Should I buy Cisco stock in 2025? Expert NZ Analysis

What is Cisco?

How much is the Cisco stock?

The price of Cisco stock is slightly down this week. As of now, Cisco shares are trading at $63.05 USD, reflecting a 24-hour decrease of $0.29 (-0.46%) and a weekly change of -1.2%. The company boasts a market capitalisation of $250.83 billion, with an average three-month trading volume of 23.32 million shares. Its current price-to-earnings (P/E) ratio stands at 25.73, while the dividend yield is a solid 2.60% per year and the stock’s beta is 0.89, indicating lower volatility than the broader market. With these metrics, Cisco is seen as a steady performer, offering both income and potential for growth to New Zealand investors.

Our full analysis on the Cisco stock

Having thoroughly reviewed Cisco Systems’ latest financial statements, stock performance over the past three years, and the most recent sector dynamics, our proprietary analytics have integrated financial ratios, technical signals, peer benchmarks, and macro data. This multi-dimensional assessment offers a high-resolution perspective on Cisco’s positioning. So, why might Cisco stock once again become a strategic entry point into the global technology and communication equipment sector in 2025?

Recent Performance and Market Context

Cisco’s stock (NASDAQ: CSCO) has demonstrated remarkable resilience amid the technology sector’s volatility, trading at $63.05 on 30 May 2025—a robust shift, up 36.8% over the past year and a healthy 6.5% gain in the last six months. This momentum outpaces many of its close competitors across global and developed markets. The 52-week range, from $44.50 to $66.50, signals a significant recovery phase, both technically and sentiment-wise.

Positive catalysts in recent quarters include Cisco’s successful $28 billion acquisition of Splunk, finalized in March 2024, which has positioned the firm as a front-runner in AI-driven observability and cybersecurity. Notably, Cisco outperformed Q1 2025 consensus on adjusted EPS, illustrating strong operational leverage even as overall revenue posted a modest short-term softness (-6% YoY). The market has rewarded these advances, in part due to Cisco’s robust dividend yield (2.6%) and an increasing appetite for defensible, income-generating tech stocks.

From a macro perspective, the networking and security sector stands to benefit from continued global digitalisation, AI adoption, and rising cybersecurity expenditures. New Zealand institutional investors, in particular, have shown increasing allocation to global technology leaders, seeking diversified growth and resilient dividends as the Reserve Bank of New Zealand holds rates steady and NZD/USD fluctuations support overseas asset allocations.

Technical Analysis

Cisco’s technical outlook offers distinctively bullish undertones. All major moving averages—MA20 ($61.47), MA50 ($59.36), MA100 ($60.31), and MA200 ($56.99)—are currently sitting beneath the spot price, giving a clear, multi-timeframe buy signal and underpinning medium-term momentum. The proximity of the current price to the $64.80-$65.50 resistance band suggests a potential breakout structure, while solid support is established around $59.30, offering a favourable risk/reward setup.

In summary, Cisco is not extended technically, with room for further upside if it breaks above the $65.50 resistance—a pattern corroborated by increased institutional volume and positive chart structure.

Fundamental Analysis

Despite a period of modest headline revenue contraction, Cisco’s fundamental profile remains impressive. Q1 FY2025 revenue printed at $13.8 billion, with an adjusted EPS of $0.91 handily beating expectations. Net profit (GAAP) reached $2.7 billion ($0.68 per share), sketching a scenario where operating efficiency and balance sheet strength offset top-line softness.

Cisco’s forward guidance remains constructive: FY2025 revenues are projected at $56.5–$56.7 billion and non-GAAP EPS at $3.77–$3.79, underlining robust earnings continuity. A trailing P/E ratio of 25.73 appears justified given the company’s post-acquisition trajectory, strong cash flows, and the embedded option value of its AI and security platforms. The stock’s PEG and Price/Sales metrics suggest a valuation that is neither over-extended nor out of step with sector peers, which supports renewed investor confidence.

• Market leadership: Dominant provider of networking equipment and infrastructure
• Diverse portfolio: Exposure to fast-growing security, collaboration, and observability segments, materially reinforced by the Splunk acquisition
• Global reach: Robust presence across the US, EMEA, and Asia-Pacific, supplying blue-chip enterprise and government clients

Cisco’s unrivalled R&D pipeline, brand equity, and successful navigation of secular shifts (adoption of AI, cloud security, remote work) serve as pillars for future growth.

Volume and Liquidity

The average daily trading volume, at 23.32 million shares over the past three months, reinforces the ongoing market confidence and points to a highly liquid position, rare for legacy technology stocks. Such volumes ensure ease of entry and exit and support dynamic price discovery—an essential factor for both tactical and strategic investors in the New Zealand market.

The sizeable free float and regular, stable trading activity enable Cisco’s valuation to dynamically reflect both macro tailwinds and company-specific catalysts. Institutional flows, which have been steadily increasing since late 2024, further reinforce Cisco’s liquidity profile, with major global funds and ETFs recalibrating towards AI-convergent industrial technology leaders.

Catalysts and Positive Outlook

• AI Transformation: Integration of Splunk’s AI-driven observability solutions stands to generate significant cross-selling synergies—management targets $1 billion in AI-related orders in FY2025 alone.
• Product Innovation: Ongoing enhancements in AI, networking, and cloud security, with next-generation product launches scheduled that could unlock new revenue streams.
• ESG Leadership: Cisco’s commitment to ESG best practices, especially around sustainable supply chains and social responsibility, continues to attract incremental institutional inflows.
• Sector Growth: Persistent global demand for secure, high-speed networking and the accelerating need for cyber-resilience amplify the value proposition.

Externally, the regulatory and consumption environment remains supportive: technology budgets are reaccelerating post-pandemic, and major corporates are prioritising infrastructure upgrades—exactly Cisco’s sweet spot. For NZ-based investors, exposure to the fast-evolving US tech landscape via a dividend-rich blue chip like Cisco offers not only capital appreciation potential but also portfolio diversification from local market cyclicality.

Investment Strategies

• Short-term:
• Entry near the primary support ($59.30) capitalises on any pullbacks, with a sharp eye on momentum shifts or ahead of scheduled earnings.
• Potential breakout traders could look for confirmation above $65.50 resistance to ride a momentum surge, as technicals often align with new institutional inflows post-catalyst.
• Medium-term:
• Portfolio additions ahead of further Splunk integration milestones or major AI contracts represent a strategy to benefit from operational inflection points.
• The consistent dividend (2.6% annual yield) supports a “total return” approach, which remains highly valued by income-focused investors.
• Long-term:
• Cisco’s entrenched position in global networking, formidable R&D, and proven adaptability to secular trends (cloud, security, AI) provide a compelling argument for strategic core holdings.
• The attractive analyst consensus target ($70.76 average) offers solid appreciation potential, with upside above 12% from current levels.

For New Zealand investors considering cross-border allocation, the USD exposure hedges against local currency risk, while Cisco’s mega-cap liquidity ensures ETF inclusion and index stability.

Is it the Right Time to Buy Cisco?

The balance of evidence points to Cisco as an exceptionally well-positioned stock deserving of renewed attention. Its operational excellence, stable fundamentals, and transformative moves in AI and observability create a robust platform for future growth. Technical signals, rising institutional volumes, resilient cash generation, and a progressive dividend policy further support renewed interest.

With an analyst consensus price target suggesting double-digit upside, ongoing product and AI innovation, and a durable leadership position in core network and security markets, Cisco seems to represent an excellent opportunity at an inflection point for both the sector and the company. For investors seeking exposure to the new wave of digital infrastructure with a defensive tilt and visibility on income, the fundamentals justify renewed consideration of Cisco as a core portfolio holding for 2025 and beyond.

In sum, Cisco’s convergence of bullish catalysts, solid fundamentals, and favourable technical landscape may well mark the beginning of a new, stronger upward phase—a timely moment for discerning investors to seriously consider its long-term growth story.

How to buy Cisco stock in New Zealand?

Buying Cisco stock (NASDAQ: CSCO) as a New Zealand investor is both simple and secure when using an online broker regulated by reputable authorities. You have two main methods: buying shares outright (spot/cash purchase) or trading with Contracts for Difference (CFDs), which allow speculation on price movements with leverage. Both approaches can be accessed from New Zealand with just a few clicks, providing transparency and control. Each option has specific advantages and risks; the right choice depends on your investment style and objectives. To help you get started, a detailed comparison of trusted brokers is available further down this page.

Spot Buying

A spot (cash) purchase of Cisco stock means you are buying actual shares listed on the NASDAQ, making you a direct part-owner entitled to potential dividends and capital gains. Most NZ brokers charge a flat commission fee per trade—typically around NZ$5 to NZ$15 on US shares.

• If the Cisco share price is US$63.05 and the NZD/USD rate is 0.60, that's around NZ$105 per share.
• With a NZ$1,000 investment, after a NZ$8 brokerage fee, you could buy approximately 9 shares.

Gain scenario

If Cisco's share price rises by 10%, your investment grows to NZ$1,100. Result: that's a NZ$100 gross gain (+10%), excluding currency fluctuations and fees.

Trading via CFD

CFD (Contract for Difference) trading on Cisco allows you to speculate on price movements without owning actual shares. You can use leverage—meaning you control a larger position with a smaller amount of capital. CFD providers typically charge a spread (the difference between buy and sell prices) and, if you hold positions overnight, may apply a small daily financing fee.

Suppose you invest NZ$1,000 in a Cisco CFD position with 5x leverage. This gives you market exposure of NZ$5,000.

Gain scenario

If Cisco shares rise by 8%, your position returns 8% × 5 = 40%. Result: you gain NZ$400 on your NZ$1,000 stake (excluding spreads and overnight fees).

Final Advice

Before investing, carefully compare broker fees, platform features, and tax implications—these can significantly impact your results. Your best approach depends on your preferences: buy-and-hold investors often choose cash buying, while more active traders may prefer CFDs' flexibility. For a detailed broker comparison tailored to NZ residents, continue with our trusted guide just below.

Our 7 tips for buying Cisco stock

The latest news about Cisco

Cisco’s share price has risen by 36.8% over the past year, reflecting strong investor confidence. This performance significantly outpaces most technology peers and highlights steady demand for the company’s core networking, security, and observability solutions, of particular relevance as many New Zealand enterprises continue to digitise their infrastructures. The stock currently trades at $63.05, close to its 52-week high, with a market capitalization of $250.8 billion, reinforcing Cisco’s stature in the global tech sector and suggesting stability for regional investors seeking blue-chip exposure with robust dividend returns.

Recent technical analysis shows a consensus “Buy” signal on key moving averages, supporting a constructive outlook. Cisco’s 20-, 50-, 100-, and 200-day moving averages all indicate upward momentum, while the Williams %R also flashes a buy signal. The Relative Strength Index stands at a neutral 63.64, and the MACD gives a mild sell indication, but overall technical levels point to sustained strength with support at $59.30 and resistance at $64.80. These signals are particularly relevant for New Zealand investors and institutions who track market timing for large-cap U.S. technology positions.

The completed $28 billion acquisition of Splunk is a strategic milestone accelerating Cisco’s presence in AI and cybersecurity. This merger, finalised in March 2024, strengthens Cisco’s position in data observability and security for intelligent digital infrastructure—a key requirement for New Zealand’s critical sectors including government, education, and telecommunications, all of which rely extensively on Cisco’s technologies. The integration is already contributing targeted synergies and cross-selling opportunities, with Cisco aiming for $1 billion in AI-driven orders in FY2025, underscoring direct relevance to APAC clients prioritising next-generation security.

Cisco’s latest quarterly results exceeded analyst earnings expectations and its FY2025 outlook remains resilient. While revenue for Q1 FY2025 dipped 6% year-over-year, the company surpassed non-GAAP EPS forecasts, reporting $0.91 per share. This performance illustrates cost discipline and effective execution on high-margin segments, and reaffirms the board’s commitment to capital returns illustrated by a solid 2.60% dividend yield. For New Zealand asset managers, this combination of defensive fundamentals and attractive income is especially valued in portfolio construction.

Expert consensus from 21–25 leading analysts remains “Buy,” with a mean price target of $70.76—about 12% upside from current levels. This signals broad confidence in Cisco’s strategic execution, innovation pipeline, and the growth potential unlocked by the Splunk acquisition. Notably, Cisco’s extensive Asia-Pacific footprint, including longstanding partnerships and infrastructure deployments in New Zealand, elevates the relevance of these signals for local investors who benefit from firsthand exposure to the company’s regional initiatives and continued expansion.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.