# Cisco stock drops 5% on Piper Sandler downgrade

> Piper Sandler cuts Cisco price target to $125 from $132, citing concerns that industry growth is peaking despite strong recent earnings.
- Title: Cisco stock drops 5% on Piper Sandler downgrade · CNBC
- Summary: Piper Sandler cuts Cisco price target to $125 from $132, citing concerns that industry growth is peaking despite strong recent earnings. Piper Sandler…
- Keywords: cisco, piper sandler, stock downgrade, price target, artificial intelligence, networking equipment, business, finance, stock, drops, Piper, Sandler
- Source: CNBC — https://cnbc.com/2026/09/22/cisco-stock-piper-sandler-price-target.html
- Author: Isabel O'Brien
- Published: 2026-09-22T19:21:11+00:00
- Read time: 1 min
- Topics: cisco, piper sandler, stock downgrade, price target, artificial intelligence, networking equipment, business, finance
## Piper Sandler cuts Cisco target
Piper Sandler cut its price target on Cisco to one hundred twenty five dollars from one hundred thirty two dollars on Tuesday, citing lower price-to-earnings multiple expectations.
## Growth concerns drive the cut
Piper analysts expressed concerns that growth is peaking in the industry, suggesting sales growth would dip back into single digits despite Cisco's nearly fifteen percent projection.
## Stock drops five percent
Cisco stock dropped almost five percent on Tuesday following the downgrade. The shares closed at one hundred six dollars and forty four cents.
## Strong recent performance fades
Cisco hit a record high in June and is up fifty seven percent over the past twelve months as revenue surged with the artificial intelligence boom and strong fourth-quarter earnings.
## CEO defends guidance outlook
CEO Chuck Robbins told CNBC's Jim Cramer last month that Cisco is operating in incredible markets but will start the year being a little bit prudent.

> We're starting a new fiscal year. We're operating in incredible markets. But it's also a time that we're going to start the year being a little bit prudent.
## Hyperscaler revenue expected to double
Hyperscalers made up about four billion dollars in revenue in fiscal year two thousand twenty six, and Cisco expects that number to almost double in fiscal two thousand twenty seven to seven point five billion dollars.
## Key takeaway

Piper Sandler downgraded Cisco's price target on concerns growth is peaking, sending the stock down five percent despite strong earnings and AI-driven revenue gains.