Morgan Stanley changes up Cisco stock price target after earnings

May 16, 2026 - 01:20

There is a version of Cisco that Wall Street wrote off years ago - a legacy networking giant stuck in the slow lane while flashier AI names grabbed all the attention. That story is getting harder to tell lately. The 41-year-old multinational technology conglomerate headquartered in California just reported earnings that forced analysts to take a second look. Morgan Stanley responded by revising its price target for Cisco shares, signaling a shift in how the firm views the company's near-term prospects.

The adjustment comes as Cisco continues to push deeper into artificial intelligence infrastructure and cybersecurity, two areas where demand remains strong. While the company's core networking business still faces headwinds from enterprise spending caution, the earnings report showed signs of stabilization. Morgan Stanley's updated target reflects a belief that Cisco can capture more AI-related revenue than previously expected, particularly through its data center switches and Silicon One chips.

Investors have been watching closely to see if Cisco can sustain momentum after a period of sluggish growth. The revised target from Morgan Stanley suggests that the old narrative of a slow-moving hardware vendor may no longer apply. For now, the market appears willing to give Cisco credit for its transformation efforts, even as broader tech volatility persists.