Amit Singh

Tue, Jun 24, 2025, 8:34 AM3 min read

Cisco (CSCO) has been on an impressive run over the past year, with its stock soaring 42.5% and reaching a fresh 52-week high on Tuesday, June 24. Moreover, the strength across the company’s key performance metrics suggests that CSCO stock has further room to run.

Cisco reported solid momentum in future revenue growth drivers during its latest quarterly earnings report (Q3). The company’s annualized recurring revenue (ARR), subscription-based income, and remaining performance obligations (RPO) showed healthy growth. Cisco’s total ARR stood at $30.6 billion at the end of the quarter, an increase of 5%, with product ARR growth of 8%. Meanwhile, total subscription revenue grew 15% to $7.9 billion and represented 56% of Cisco’s total revenue. Total RPO was $41.7 billion, up 7%. The strength in these key performance metrics suggests solid growth ahead, which will support its share price.

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Moreover, a significant catalyst behind Cisco’s recent strength is the growing opportunity in the artificial intelligence (AI) infrastructure market. The company has already secured more than $1 billion in AI-related infrastructure orders so far this fiscal year, surpassing its 2025 goal by a full quarter. Notably, in the third quarter alone, it booked over $600 million in orders from large-scale web customers, reflecting the robust demand for its AI-capable hardware and networking solutions.

While Cisco is well-positioned to capitalize on the AI-driven opportunities, analysts’ average price target of $71.94 for CSCO stock indicates limited upside potential. Nonetheless, the highest analyst price target for CSCO stock is $79, suggesting potential upside of over 17% from its recent closing price of $67.38 on June 23.

Cisco’s momentum is driven by strong demand for its products across its portfolio. Networking product orders saw double-digit growth in the latest quarter, driven by strength in enterprise routing, switching, and industrial IoT offerings. Campus switching orders also rose by high single digits year-over-year, even against a challenging comparison from last year. Additionally, Cisco experienced a triple-digit sequential increase in orders for its Wi-Fi 7 products, underscoring interest in its latest wireless networking technologies.