Is Cisco Systems Stock Outperforming the Dow?

Cisco Systems, Inc_ logo on phone-by Piotr Swat via Shutterstock

Kritika Sarmah

Wed, February 25, 2026 at 9:35 PM GMT+9 2 min read

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CSCO

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With a market cap of $307.1 billion, Cisco Systems, Inc. (CSCO) is a global leader in networking infrastructure, cybersecurity, and enterprise connectivity software. Founded in 1984 and headquartered in San Jose, Cisco provides the hardware, software, and services that enable secure data transmission across corporate networks, cloud environments, and the internet backbone.

Companies worth $200 billion or more are generally described as “mega-cap stocks.” CSCO fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the communication equipment industry. Its core competencies lie in its deep networking engineering expertise, massive installed base of enterprise infrastructure, and ability to layer high-margin software and security onto that hardware footprint. The company excels at delivering reliable, scalable connectivity across complex enterprise and cloud environments, creating high switching costs and long upgrade cycles.

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Cisco touched its 52-week high of $88.18 on Feb. 10 and is currently trading 11.4% below that peak. Meanwhile, CSCO stock prices have surged 2.5% over the past three months, underperforming the Dow Jones Industrial Average’s ($DOWI) 5.9% rise during the same time frame.

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CSCO stock prices have soared 1.5% on a YTD basis and 23.6% over the past 52 weeks, compared to $DOWI’s 2.3% gains in 2026 and 13.2% surge over the past year.

From a technical perspective, CSCO has remained above its 200-day moving average since April 2025 and has moved above its 50-day moving average in late January, indicating a sustained upward bias despite recent volatility.

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Cisco Systems, Inc. delivered a strong Q2 FY2026 on Feb. 11, with revenue rising 10% year over year to $15.3 billion and non-GAAP EPS increasing 11% to $1.04, both ahead of expectations. Adjusted net income climbed 10% to $4.1 billion, supported by double-digit product growth and robust AI-driven infrastructure demand, with AI-related orders reaching about $2.1 billion. Despite some gross-margin pressure from higher memory costs, Cisco raised full-year guidance and returned $3 billion to shareholders, underscoring improving growth momentum. However, its shares tanked 12.3% in the next trading session.

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On a more positive note, Cisco has also outperformed its peer, Hewlett Packard Enterprise Company’s (HPE) 2.4% decline over the past 52 weeks and a marginal 15.7% drop in 2026.

Among the 25 analysts covering the CSCO stock, the consensus rating is a “Moderate Buy.” Cisco’s mean price target of $88.45 suggests a 13.2% upside potential from current price levels.

_ On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com _

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