Piper Sandler Cut Knocks Cisco Shares After Record Run and Big FY2027 Pitch

What moved the stock

Cisco slid almost 5% Tuesday after Piper Sandler lowered its price target to $125 from $132, citing a reset in expected price-to-earnings multiples as investors fret that sector growth may be cresting. The stock finished at $106.44, down $5.02 or 4.50%. By 7:59 PM EDT, the last after-hours trade was $106.38, off 0.05%.

The recent results and guidance

Cisco's latest quarter topped expectations, with revenue of $17.25 billion exceeding the $16.8 billion figure compiled by LSEG. In August, the company laid out an ambitious FY2027 outlook calling for almost 15% revenue growth. Even so, shares slipped at the time as the guidance drew a cool response from analysts.

How analysts are framing it

Piper's team said a lower multiple made sense given fears that broader industry growth is topping out. While Cisco laid out an FY2027 growth path, analysts argued sales would settle back into single-digit gains. Piper still labeled the company's projection "conservative" relative to what they see as strong market demand.

Where growth could come from

Cisco highlighted hyperscalers as a swing factor, estimating about $4 billion in revenue from those customers in fiscal 2026 and guiding to $7.5 billion in fiscal 2027. Speaking with CNBC's Jim Cramer last month, CEO Chuck Robbins said, "We're starting a new fiscal year. We're operating in incredible markets," and added, "But it's also a time that we're going to start the year being a little bit prudent." Since reaching a record in June, the stock has gained 57% over the past 12 months, with the artificial intelligence boom fueling revenue strength.

When news shifts quickly, steady planning helps protect and grow your savings. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.

What this means for your portfolio

Big picture, Cisco's a reminder that even strong prints and bold targets can get second-guessed if investors worry about what comes after the boom. For everyday investors, that mix of rapid gains, ambitious guidance, and valuation jitters is what makes stocks like this swingy.

Building a simple long term approach can keep your financial goals on track. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.