Cisco Systems stock heads into earnings after Morgan Stanley downgrade

Cisco Systems stock traded at 84.45 euros on Lang & Schwarz at 10:53 CET on Saturday, November 7, 1.08 percent below the Xetra close of 85.37 euros on Friday, November 6. The move followed a week in which investors weighed a broker downgrade against the company's upcoming results.

Broker Cuts Target Before Results

On Thursday, November 5, Morgan Stanley cut Cisco from Overweight to Equal-weight and lowered its price target from 135 US dollars to 120 US dollars. Yahoo Finance reported that analyst Meta Marshall still saw supportive fundamentals but a more balanced risk-reward profile after the stock's strong run.

Morgan Stanley cited the risk that customers pulled orders forward ahead of planned price increases. The bank also warned that a larger share of lower-margin hardware sold to hyperscale customers could pressure gross margins as Cisco expands its artificial-intelligence infrastructure business.

Results Set The Next Test

Cisco said on Tuesday, November 3, that it will release fiscal first-quarter results after the US market close on Thursday, November 12. The quarter covers the period ended October 24, 2026, with a conference call scheduled for 4:30 p.m. Eastern time. The company's newsroom announcement confirmed the timetable.

Investors will focus on order momentum, gross margins and the pace of artificial-intelligence revenue. Management's ability to show that demand remains durable after pricing changes will shape the debate around whether the recent rally can be supported by earnings growth.

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Cisco trades in the US market alongside the broader S&P 500.

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