Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization. In addition, it provides Internet for the future product consists of routed optical networking, 5G, silicon, and optics solutions; collaboration products, such as meetings, collaboration devices, calling, contact center, and communication platform as a service; end-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust; and optimized application experiences products including full stack observability and network assurance. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

Компания Cisco Systems, Inc. демонстрирует сильные финансовые показатели, включая высокие значения ROE, ROA и маржи, что указывает на эффективность управления и способность генерировать прибыль. Тем не менее, мультипликаторы, такие как P/S и P/B, значительно превышают медианные значения по отрасли, что может указывать на переоцененность акций. Долговая нагрузка также вызывает опасения, так как коэффициент долга к капиталу выше медианы отрасли. Тем не менее, стабильный рост выручки и чистой прибыли в последние годы, а также высокий уровень валовой и операционной маржи подчеркивают устойчивость компании. Дивиденды остаются стабильными, но их уровень снижается. В целом, сильные позиции в операционной деятельности и прибыльности, в сочетании с проблемами в оценке и долговой нагрузке, обуславливают необходимость корректировки целевого ценового прогноза.

Cisco Systems, Inc.

Friday, March 13, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Alphabet Inc. (GOOGL), Cisco Systems, Inc. (CSCO) and PepsiCo, Inc. (PEP), as well as two micro-cap stocks Village Super Market, Inc. (VLGEA) and Air T, Inc. (AIRT). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
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The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Q4 GDP, Durable Goods Lower than Anticipated
Today's Featured Research Reports
Alphabet’s shares have outperformed the Zacks Internet - Services industry over the past six months (+21.2% vs. +17%). The company is benefiting from accelerated growth across AI infrastructure, Google Cloud, and Search. Google Cloud ended the fourth quarter of 2025 with $240 billion in backlog, up 55% sequentially.
GOOGL has more than 325 million paid subscriptions across consumer services with strong adoption for Google One and YouTube Premium. Gemini app now has over 750 million monthly active users and the company sold more than 8 million paid seats of Gemini enterprise in Q4.
Search is benefiting from AI Overviews and AI Mode that has driven growth in overall queries. Launching of personal intelligence in AI Mode in search and the Gemini app bodes well for Alphabet’s prospects. YouTube is benefiting from the growing demand for shorts. However, stiff competition in cloud computing has been concerning.
(You can read the full research report on Alphabet here >>>)
Shares of Cisco have outperformed the Zacks Computer - Networking industry over the past six months (+18% vs. +16.4%). The company’s business model is benefiting from strong product orders from hyperscalers, enterprises, public sector, service provider, and cloud customers. Splunk's acquisition enhances CSCO’s recurring revenue base.
The buyout significantly expands Cisco’s portfolio of software-based solutions. The launch of AI-powered Hypershield, which combines security and networking, strengthens its security portfolio. Networking sales benefits from strong demand for AI infrastructure and campus networking solutions.
Product orders from service provider and cloud customers were strong, driven by high double-digit order growth in hyperscalers. Cisco expects to take AI orders in excess of $5 billion and to recognize more than $3 billion in AI infrastructure revenue from hyperscalers in fiscal 2026.However, stiffening competition is a headwind.
(You can read the full research report on Cisco here >>>)
PepsiCo’s shares have gained +15.9% over the past six months against the Zacks Beverages - Soft drinks industry’s gain of +15.8%. The company’s performance demonstrates strong business momentum, supported by resilient international growth, steady brand innovation and disciplined execution.
The company’s international segment remains a key growth engine, delivering consistent organic revenue gains and strong profitability, driven by broad-based demand across Latin America, Europe and Asia-Pacific. In North America, the beverages business is benefiting from market share gains in flagship brands and innovation across modern soda, hydration and energy platforms.
PEP’s focus on productivity, automation and digital transformation is strengthening operational efficiency and supporting margin expansion. However, PepsiCo faces near-term operational challenges, particularly in its PFNA business, and persistent cost and tariff pressures.
(You can read the full research report on PepsiCo here >>>)
Shares of Village Super Market have gained +6.2% over the past six months against the Zacks Retail - Supermarkets industry’s gain of +20.8%. This microcap company with a market capitalization of $590.14 million has its investment case centers on improving sales momentum, strengthening cash generation, and a visible reinvestment pipeline, balanced against margin pressure and competitive risks.
Sales rose 5.7% year over year to $1.2 billion in the first half of fiscal 2026, with same-store sales increasing 3.7%, supported by digital growth, store remodels, and strength in fresh and pharmacy categories. Operating cash flow increased to $78.8 million, raising total cash to $161.2 million and improving liquidity metrics, which reduces reliance on external financing and supports capital projects.
However, gross margin declined 50 bps due to lower Wakefern-related income, promotional pressure, and sales mix shifts, highlighting earnings sensitivity in the low-margin grocery model. Despite these risks, the stock trades at significant valuation discounts to peers and the broader market.
(You can read the full research report on Village Super Market here >>>)
Air T shares have underperformed the Zacks Transportation - Air Freight and Cargo industry over the past six months (-5.9% vs. +34.8%). This microcap company with a market capitalization of $60.49 million is facing elevated leverage, rising interest expense and operating cash usage limit financial flexibility. FedEx concentration and Rex integration risk add uncertainty. The valuation suggests the market remains cautious despite potential upside from platform expansion despite potential upside from operational improvements.
Nevertheless, Air T’s investment case reflects a diversified aviation platform with mixed fundamentals. Ground Support Equipment and Digital Solutions show improving momentum, with backlog growth and rising recurring revenue supporting longer-term earnings potential.
The Overnight Air Cargo segment provides baseline cash flow through long-standing FedEx feeder relationships. Strategic initiatives, including the Rex regional airline acquisition and the Crestone–Arena aviation asset management expansion, could scale the platform and broaden lifecycle exposure.
(You can read the full research report on Air T here >>>)
Other noteworthy reports we are featuring today include Western Digital Corp. (WDC), Ford Motor Co. (F) and PPL Corp. (PPL).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Regulated Investments and Cost Mangement Aid PPL Corp. (PPL)
Per the Zacks analyst PPL's cost management initiatives will have positive impact on margins and its planned $23B investments through 2029 will strengthen its operation.
Higher Investment Income Aid Ares Capital (ARCC), Rising Costs Ail
Per the Zacks analyst, robust loan originations, higher investment commitment and portfolio activity will boost Ares Capital's investment income. Yet, rising costs and regulatory constraints are woes.
Solid Growth of Digital Platform Aids Western Union (WU)
Per the Zacks Analyst, Western Union's digital platform delivers accelerated money transfer services amid growing demand. However, a debt-laden balance sheet induces a rise in interest expenses.
ABM to Benefit From ELEVATE Initiative, Competition High
Per the Zacks analyst, ABM's multi-year comprehensive strategic plan, ELEVATE, is expected to accelerate the company's top-line growth and reinforce profitability. Rising competition is an overhang.
Recursion Shows Good Pipeline Progress, Lacks an Approved Product
Per the Zacks Analyst, RXRX's pipeline programs show promise. However, it has no approved products and remains years from commercialization, leaving the stock exposed to clinical risk.
Focus on Patient Monitoring Aids Masimo (MASI) Amid Stiff Competition
The Zacks analyst is optimistic about Masimo's patient-monitoring and connectivity platforms serving as integrated hubs despite its operation in a tough competitive space.
California Resources (CRC) to Gain from Berry Merger
The Zacks analyst believes that the merger with Berry Corporation enhances California Resources' scale, efficiency and cash flow generation but the elevated cost structure remains a concern.
New Upgrades
Western Digital (WDC) Poised for Growth on AI Storage and HDD Demand
Per the Zacks analyst, Western Digital's performance is being driven by higher demand for cloud end market and Agentic AI. It has formulated strategies to tackle macro and geopolitical woes.
Partnership with ServiceTitan and Hybrid Strategy Aid Ford (F)
Per the Zacks analyst, the partnership with ServiceTitan will position the Ford Pro unit as a major long-term growth driver for Ford. Also, its hybrid strategy adds resilience as EV adoption evolves.
Carter's (CRI) Experiences Strength in Retail and International Units
Per the Zacks analyst, Carter's is seeing momentum across its U.S. Retail and International segments for a while. In Q4, U.S. Retail sales grew 9.4% and International unit's sales rose 10.2%.
New Downgrades
Campbell's (CPB) Appears Troubled by Elevated Cost Inflation
Per the Zacks analyst, cost inflation hurt Campbell's gross margin. In Q2 adjusted gross profit margin fell 270 basis points to 27.7%, impacted by cost inflation and supply-chain costs among others.
Contract Delays and Weak Awards Hurt KBR's (KBR) Performance
Per the Zacks analyst, slower award activity and delays in program decisions, particularly within the Mission Technology segment, are weighing on KBR's near-term growth prospects.
Dycom's Growth is Hurting from Macro Uncertainties and Execution Risks
Per the Zacks analyst, Dycom is hurting from its exposure to seasonality and execution risks across projects. Also, high revenue concentration with a few large customers poses conversion risks.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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Air T, Inc. (AIRT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Analyst Reports for Alphabet, Cisco & PepsiCo

A month has gone by since the last earnings report for Cisco Systems (CSCO). Shares have added about 3.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cisco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Cisco Q2 Earnings Top Estimates, Revenues Up Y/Y
Cisco Systems reported second-quarter fiscal 2026 non-GAAP earnings of $1.04 per share, beating the Zacks Consensus Estimate by 1.96%. The figure increased 10.6% year over year.
Revenues of $15.35 billion surpassed the Zacks Consensus Estimate by 1.49%. The top line increased 9.7% year over year. Total Annual Recurring Revenues (ARR) were $31 billion, up 3% with product ARR growth of 6%. Total subscription revenues were $7.83 billion and represented 51% of Cisco’s total revenues. Total software revenue increased 36.9% year over year to $5.6 billion.
CSCO’s Q2 Top-Line Details
Revenues from Networking in the second quarter of fiscal 2026 were $8.29 billion, up 21% on a year-over-year basis. Security revenues were $2.01 billion, down 4% year over year. Collaboration revenues were $1.05 billion, up 6% year over year. Observability revenues were $277 million, which was in line year over year.
Total Product revenues in the second quarter of fiscal 2026 were $11.64 billion, comprising 75.8% of Cisco’s total revenues. On a year-over-year basis, product revenues increased 13.8%. Service Revenues were $3.70 billion, comprising 24.2% of Cisco’s total revenues and down 1.3% on a year-over-year basis.
Region-wise, the Americas’ revenues increased 8% year over year to $8.84 billion. EMEA (Europe, Middle East, and Africa) revenues climbed 15% year over year to $4.42 billion. APJC (Asia Pacific Japan China) revenues climbed 8% year over year to $2.08 billion.
In the second quarter of fiscal 2026, AI Infrastructure orders from webscale customers exceeded $2.1 billion.
CSCO’s Q2 Operating Details
Second-quarter fiscal 2026 non-GAAP gross margin was 67.5%, which contracted 120 basis points (bps) year over year. On a non-GAAP basis, the product gross margin decreased 90 bps on a year-over-year basis to 50.4%. Service gross margin decreased 210 bps to 17.1%.
In the second quarter of fiscal 2026, Cisco reported total non-GAAP operating expenses of $5.04 billion, up 6.2% year over year. As a percentage of revenues, operating expenses declined 110 bps year over year.
Consequently, CSCO reported a non-GAAP operating income of $5.31 billion, up 9.3% year over year. Operating margin contracted 10 bps year over year to 34.6%.
CSCO’s Balance Sheet Details
As of Jan. 24, 2026, cash and cash equivalents and investments totaled $15.8 billion, which increased from $15.7 billion as of Oct. 25, 2026.
Total debt was $30 billion as of Jan. 24, 2026, compared with $28.1 billion as of Oct. 25, 2025.
The remaining performance obligations (RPO) at the end of the second quarter of fiscal 2026 were $43.4 billion, up 5% year over year. Product RPO increased 8% year over year, of which long-term RPO was $11.8 billion, up 11% year over year. Services RPO was up 2% year over year.
In the second quarter of fiscal 2026, CSCO returned $3 billion to stockholders through share buybacks and dividends.
CSCO Offers Positive Guidance
For the third quarter of fiscal 2026, Cisco expects non-GAAP earnings between $1.02 and $1.04 per share. Revenues are expected to be in the range of $15.4 billion-$15.6 billion. Non-GAAP gross margins are expected to be between 65.5% and 66.5%.
Non-GAAP operating margin is anticipated to be between 33.5% and 34.5%. For fiscal 2026, Cisco expects non-GAAP earnings between $4.13 and $4.17 per share. The company expects revenues between $61.2 billion and $61.7 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
VGM Scores
At this time, Cisco has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cisco has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cisco (CSCO) Up 3.7% Since Last Earnings Report: Can It Continue?

Zscaler, Inc. ZS shares have plunged 33.7% over the past three months, underperforming the Zacks Computer and Technology sector’s decline of 1%. Compared to key competitors like Cisco Systems, Inc. CSCO, Fortinet, Inc. FTNT and Palo Alto Networks, Inc. PANW, Zscaler’s slump appears even more pronounced. In the trailing three months, Fortinet has risen 2.4%, while shares of Cisco Systems and Palo Alto Networks have declined 0.2% and 11.4%, respectively.
Zscaler Three-Month Price Return Performance
Image Source: Zacks Investment Research
The sharp contrast raises a tough question: Is it time to move on from Zscaler, or is there still long-term value in retaining the stock?
The plunge in Zscaler stock can be attributed to macroeconomic headwinds, including inflation, elevated interest rates and cautious enterprise IT spending. Increasing competition in the Zero Trust cybersecurity space and the company’s historically high valuation also contributed to its vulnerability during market corrections.
Zscaler holds a premium valuation, reflected in its Zacks Value Score of F. This is further reinforced by its Forward 12-month P/S ratio of 6.66, higher than the sector’s average of 6.18.
Zscaler Forward 12-Month Price-To-Sales Ratio
Image Source: Zacks Investment Research
Compared with its key competitors, Zscaler trades at a lower P/S multiple than Palo Alto Networks and Fortinet, while at a higher multiple than Cisco Systems. At present, Palo Alto Networks, Fortinet and Cisco Systems have forward 12-month P/S ratios of 10.76, 8.00 and 4.89, respectively.
We consider that the ongoing macroeconomic headwinds and lofty valuations are short-term pressures that do not diminish Zscaler’s long-term growth potential. We believe that while near-term issues are weighing on the stock, there’s still a strong fundamental case for staying invested.
Zscaler’s Investments Could Fuel Long-Term Growth
Zscaler remains at the forefront of the cybersecurity space through its innovative efforts. The company’s three main growth areas — AI Security, Zero Trust Everywhere and Data Security Everywhere — have together crossed the $1 billion annual recurring revenue (ARR) milestone, growing faster than the company’s overall business.
AI Security’s ARR is expected to exceed $500 million in fiscal 2026 as enterprises adopt AI Guard and agentic operations. Zero Trust Everywhere has already attracted more than 550 enterprises, achieving its goal of 390 enterprises quarters ahead of the initial target date. Data Security Everywhere is witnessing strong upsell opportunities as most customers use only a few modules today. These three pillars are likely to create strong, diversified drivers for Zscaler’s future growth.
Zscaler is taking an early lead in AI security, a fast-growing area of enterprise demand. The company processed nearly 1 trillion AI transactions in calendar 2025, showing how quickly enterprises are adopting AI. To address new risks like prompt injection and model poisoning, Zscaler launched AI Guard, which is now being tested by large customers.
Its Agentic Operations portfolio is also gaining traction and is expected to contribute significantly to AI Security ARR in fiscal 2026. With the integration of recently acquired Red Canary’s AI technology, Zscaler is building a differentiated AI-powered security operations center solution, positioning itself as a trusted vendor for securing AI applications.
Zscaler’s Z-Flex program is helping the company win bigger and more strategic multi-year deals. Introduced just four quarters ago (the third quarter of fiscal 2025), Z-Flex already delivered more than $290 million in total contract value bookings in the second quarter of fiscal 2026, a 65% sequential increase. The program gives customers the flexibility to adopt multiple modules over time under predictable pricing, making it easier to expand usage. This model encourages long-term commitments, strengthens customer relationships, and supports sustainable growth in fiscal 2026 and beyond.
Zscaler’s Strong Financial Performance
Despite macroeconomic pressures, Zscaler’s financial results remain impressive. In the second quarter of fiscal 2026, revenues soared 26% year over year to $816 million, with emerging products growing at a faster rate than core offerings. Non-GAAP earnings jumped approximately 29.5% to $1.01 per share.
Zscaler’s growing customer base underscores its strong market positioning. At the end of the second quarter, it had 728 customers generating $1 million or more in annual recurring revenues (ARR), with Fortune 500 and Global 2000 companies comprising a substantial portion. At the end of the second quarter, more than 45% of the Fortune 500 companies and approximately 40% of the Global 2000 companies are using Zscaler’s solutions.
Zscaler is poised to benefit from enterprise migration to cloud environments, the increasing adoption of AI-driven cybersecurity and a recovery in IT spending. Its focus on large-scale enterprise deals and innovation pipeline is expected to drive accelerated growth in 2026 and beyond. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates strong double-digit revenue and earnings per share growth.
Sales And EPS Growth Estimates
Image Source: Zacks Investment Research
Final Thoughts: Hold ZS Stock for Now
Although Zscaler faces challenges related to macroeconomic uncertainties and premium valuation, the company’s heavy investment in AI, innovative cybersecurity capabilities and growing adoption of its solutions make the stock worth retaining at present.
Zscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zscaler Stock Plunges 34% in Three Months: Time to Exit or Hold Tight?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $377.0 million dollar inflow -- that's a 0.5% increase week over week in outstanding units (from 548,950,000 to 551,500,000). Among the largest underlying components of ITOT, in trading today Chevron Corporation (Symbol: CVX) is up about 1.6%, Cisco Systems Inc (Symbol: CSCO) is down about 0.5%, and Wells Fargo & Co (Symbol: WFC) is lower by about 2.2%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $105 per share, with $152.71 as the 52 week high point — that compares with a last trade of $147.50. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 8%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Inflow Detected - ITOT, CVX, CSCO, WFC

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Alps Electric (APELY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Alps Electric is one of 607 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Alps Electric is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for APELY's full-year earnings has moved 6.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, APELY has gained about 4.9% so far this year. At the same time, Computer and Technology stocks have lost an average of 2.2%. This means that Alps Electric is outperforming the sector as a whole this year.
Cisco Systems (CSCO) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 0.9%.
Over the past three months, Cisco Systems' consensus EPS estimate for the current year has increased 2.9%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Alps Electric belongs to the Electronics - Miscellaneous Components industry, a group that includes 26 individual stocks and currently sits at #58 in the Zacks Industry Rank. This group has gained an average of 3.6% so far this year, so APELY is performing better in this area.
In contrast, Cisco Systems falls under the Computer - Networking industry. Currently, this industry has 7 stocks and is ranked #88. Since the beginning of the year, the industry has moved +0.9%.
Alps Electric and Cisco Systems could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Are Computer and Technology Stocks Lagging Alps Electric (APELY) This Year?

Ciena Corporation CIEN recently unveiled a new suite of innovations designed to address the evolving connectivity requirements of AI-driven environments. Announced ahead of the OFC 2026, these solutions include advances in hyper-rail photonics, next-generation coherent optics and AI-driven network automation, aiming to help hyperscalers, cloud providers and telecom operators build scalable optical networks capable of supporting the explosive growth in AI workloads.
A breakthrough is its hyper-rail photonics architecture, designed to dramatically increase fiber density and reduce infrastructure complexity within data centers. Modern hyperscale environments already operate thousands of fiber connections, but AI clusters are pushing those numbers even higher. Hyper-rail photonics tackles this challenge by enabling up to 32 times the density of today’s solutions, allowing as many as 128 fiber pairs within a single rack. It can reduce power consumption by up to 75% and cut space requirements by up to 85%.
Ciena announces another breakthrough with its next-generation coherent optical technology, designed to enhance transmission capacity. At the core of this innovation is a 2nm silicon design that enables single-carrier 1.6 Tb/s coherent pluggable optics, known as 1600ZR and 1600ZR+. As networks become increasingly complex, managing them efficiently becomes more challenging. To tackle this, Ciena is integrating agentic AI capabilities into its network automation platform.
Agentic AI refers to systems capable of autonomous decision-making and network optimization based on real-time telemetry data. Ciena’s AI-powered network automation includes several new intelligent agents, such as agents for assurance, routing and network digital twin validation. Its technology portfolio, including 800 Gb/s C- and L-band coherent pluggables, photonic line systems optimized for scale-across architectures and the recently introduced Vesta 200 6.4T CPX flexible optical engine, is targeted at the rapidly growing AI infrastructure investments by hyperscale cloud providers.
Market Rivals Intensify the AI Networking Battle for CIEN
Cisco Systems, Inc.’s CSCO business model is benefiting from strong product orders from hyperscalers, enterprises, the public sector, service providers and cloud customers. AI infrastructure orders taken from hyperscalers totaled $2.1 billion in the second quarter of fiscal 2026. These orders are coming from some of the biggest players in cloud computing and reflect a growing demand for AI-optimized networks. It is leveraging Agentic AI to improve customer experience. The launch of Renewals Agent, an Agentic AI-driven solution co-developed with Mistral, and a new Assistant to help customers digitize and de-risk Network Change Management have been noteworthy developments in this regard.
Arista Networks, Inc. ANET is poised for growth in the data-driven cloud networking business with a leadership position in 100-gigabit Ethernet switches, industry-leading capacity, low latency, port density and power efficiency. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance along with programmability that enables integration with third-party applications for network management, automation and orchestration. ANET’s product portfolio facilitates the implementation of high-performance, highly scalable and appropriate solutions for every environment. It is increasingly gaining traction in 200- and 400-gig high-performance switching products. The Arista 2.0 strategy is resonating well with its customers.
CIEN Price Performance, Valuation and Estimates
Shares of CIEN have surged 157% in the past six months compared with the Communications - Components industry’s growth of 97.5%.
Image Source: Zacks Investment Research
Valuation-wise, CIEN seems attractive, as suggested by the Value Score of B. CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 68.27, above the industry’s 42.94.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CIEN earnings for fiscal 2026 has been revised upward over the past 60 days.
Image Source: Zacks Investment Research
CIEN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ciena's Networking Innovations Aim to Power the AI Infrastructure Boom

Nokia (NYSE:NOK), which provides worldwide telecoms solutions, closed Tuesday at $7.80, down 1.14%. The drop comes after several months of growth and could reflect wider concerns about translating AI investments into revenue growth.
Trading volume reached 60.8 million shares, about 67% above its three-month average of 36.5 million shares. Nokia IPO'd in 1994 and has grown 505% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) slipped 0.21% to 6,781, while the Nasdaq Composite (NASDAQINDEX:^IXIC) inched up 0.01% to finish at 22,697. Within telecommunications equipment, industry peers showed a mixed tone as Ericsson (NASDAQ:ERIC) closed down 0.35% at $11.30 and Cisco Systems (NASDAQ:CSCO) finished up 1.96%at $77.70.
What this means for investors
Nokia stock slipped this week, but it is still up 19.82% year-to-date. There were no obvious triggers for today’s dip, which could be due to profit taking or wider AI jitters. In February, the company announced a collaboration with Amazon Web Services that would allow agentic AI to respond to real-world situations.
Today saw two bullish signals. Jefferies Financial Group opened a 955,400-share position in Nokia in Q3, worth around $4.6 million. This, along with other institutional purchases, signals rising engagement. There was also a jump in the number of Nokia call options, with almost 70% more than there’d be in a typical day.
The Finnish telecom company is due to report earnings at the end of April. Investors will be watching for progress on 6G networks, AI monetization, and agentic AI.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Market Today, March 10: Nokia Dips as Jefferies Opens Large Position

Arista Networks, Inc. ANET has gained 73.3% in the past year against the Internet software industry’s decline of 1.3%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.
Image Source: Zacks Investment Research
It has also outperformed its peers like Hewlett Packard Enterprise Company HPE and Cisco Systems, Inc. CSCO. HPE has gained 42.1%, and Cisco has soared 25.6% during this period.
Strength in AI Networking Vertical and Cash Flow Growth are Tailwinds
Arista is benefiting from growing AI infrastructure spending cycles. AI deployments across industries are leading to a surge in data traffic. These AI workloads are putting pressure on the front-end cloud. The factor is driving migration to 800 gig Ethernet, which is necessary to support high-bandwidth AI traffic. Consequently, back-end network deployments connect GPU clusters that train an AI model. Arista’s AI-related revenue growth is driven by both front-end and back-end deployments. The company targets AI networking revenues of $3.25 billion in 2026, backed by healthy traction in the AI data center market.
Per a Precedence Research report, the AI in networks market size is projected to grow from $15.28 billion in 2025 to $192.42 billion in 2034, with a compound annual growth rate of 32.51%. The company is steadily expanding its portfolio to capitalize on this emerging market trend. In the fourth quarter of 2025, the company introduced the R4 series networking platforms designed to support AI data centers and backbone routing infrastructure. Key capabilities include greater power efficiency, reduced AI job competition time, integrated security, high-performance switching and routing.
It launched VESPA (Virtual Ethernet Segment with Proxy ARP) to support large wireless campus environments such as universities, large corporate offices and campuses. It enables organizations to create large-scale WLAN mobility networks and maintain seamless connectivity as users move between access points. The company extended the capability of its AVA (Autonomous Virtual Assist), an AI-driven system designed to automate network operations. This will enable enterprises to reduce manual troubleshooting, reduce downtime and improve operational efficiency. Arista also unveiled ruggedized campus switches engineered for smart factories, warehouses, outdoor installation and industrial campuses. Such innovative product launches bode well for long-term growth.
In 2025, Arista generated $4.37 billion of net cash from operating activities compared with $3.71 billion in 2024. Arista’s cash flow momentum continues to be driven by solid growth in profitability, optimized cost structure and efficient working capital management.
Major Challenges
Arista’s growth prospects are heavily tied to AI Infrastructure spending by enterprises. Moreover, it continues to derive a substantial portion of its revenue from a limited number of large customers, leading to high customer concentration risk.
AI networking hardware depends heavily on memory and semiconductor components. Shortages of these components remain a concern. Moreover, rising component costs are putting pressure on gross margin. Growing geopolitical volatility, rising energy prices and overall global macro headwinds can further raise the price of components. Current geopolitical unrest can also lead to constrained spending on AI infrastructure buildout by businesses, which can significantly impact Arista’s financial results.
Arista faces competition from Hewlett Packard Enterprise and Cisco in the AI networking space. HPE is benefiting from a robust demand environment for its edge-to-cloud platform, GreenLake, backed by growing digital transformation initiatives. With the acquisition of Juniper Networks, HPE has significantly strengthened its networking domain in AI, cloud and hybrid solutions. Cisco is also benefiting from the growing demand for its AI networking solutions. Growing competition can impede Arista’s growth prospects.
During the fourth quarter, total operating expenses were $530.9 million, up from $431.4 million in the year-ago quarter. Research & development costs rose to $348.4 million from $285 million. Sales and marketing expenses also increased to $139.1 million from $111 million due to a rise in headcount, new product introduction costs and higher variable compensation expenditures. Despite operating income growth, such an increase in expenses continues to weigh on margin.
Estimate Revision Trend
Earnings estimates for Arista for 2026 and 2027 have increased over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of ANET
From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 37.79, higher than the industry.
Image Source: Zacks Investment Research
End Note
Arista offers one of the broadest ranges of datacenter and campus Gigabit Ethernet switches and routers in the industry. Backed by its broad portfolio offerings and strong focus on innovation, the company will likely continue to boast a leadership position in the AI data center market in the upcoming quarters. Strong growth in cash flow is a positive. Upward estimate revision underscores investors’ growing confidence in the stock’s growth potential. However, customer concentration and heavy reliance on AI infrastructure spending are concerns. Rising component costs, macro headwinds induced by growing geopolitical unrest and an increase in energy prices can impact margins. Stiff competition with other industry leaders, such as HPE and CSCO, is a headwind. With a Zacks Rank #3 (Hold), Arista appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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ANET Rises 73.3% in a Year: How Should You Play the Stock?

Okta OKTA shares have appreciated 12.5% following the fourth-quarter fiscal 2026 results on March 4. The company reported earnings of 90 cents per share, which beat the Zacks Consensus Estimate by 6.36% and increased 15.4% year over year. Total revenues increased 11.6% year over year to $761 million, surpassing the consensus mark by 1.59%.
Okta’s prospects benefit from an expanding clientele, driven by an innovative product pipeline and strong demand for Identity solutions. Customers with more than $100K in Annual Contract Value increased 6% year over year to 5,100. OKTA ended fiscal 2026 with more than 20,000 customers.
These factors are expected to help OKTA shares recover, which have dropped 23.2% in the trailing 12 months, underperforming the broader Zacks Computer & Technology sector and peers, including Microsoft MSFT, Palo Alto Networks PANW and Cisco Systems CSCO. Over the same timeframe, the broader sector, Cisco and Microsoft have returned 33.6%, 26.7% and 7.6%, respectively, while Palo Alto Networks has dropped 5%.
OKTA Stock’s Performance
Image Source: Zacks Investment Research
OKTA Offers Positive FY27 Guidance
For fiscal 2027, OKTA expects revenues between $3.17 billion and $3.19 billion, indicating 9% growth from the figure reported in fiscal 2026. Okta expects fiscal 2027 non-GAAP earnings between $3.74 and $3.82 per share.
The Zacks Consensus Estimate for Okta’s earnings has increased by a nickel to $3.71 per share over the past 30 days. The earnings estimate suggests 6% growth over the figure reported in fiscal 2026. The consensus estimate for revenues is currently pegged at $3.18 billion, suggesting 9% growth from the figure reported in fiscal 2026.
Okta, Inc. Price and Consensus
Okta expects first-quarter fiscal 2027 revenues between $749 million and $753 million, indicating 9% year-over-year growth. Okta anticipates non-GAAP earnings between 84 cents and 86 cents per share.
For the first quarter of fiscal 2027, the Zacks Consensus Estimate for OKTA’s earnings has been unchanged at 87 cents per share over the past 30 days. The earnings estimate suggests 1.2% year-over-year growth.
OKTA Rides on Strong Portfolio & Rich Partner Base
Okta’s strong portfolio that includes new offerings, including Okta Identity Governance (“OIG”), Okta Privileged Access, Okta Device Access, Identity Security Posture Management, Identity Threat Protection with Okta AI, Fine-Grained Authorization, Auth0 for AI Agents and Okta for AI Agents. These new solutions are helping OKTA gain market share and drive top-line growth. These new products represented 30% of fiscal fourth-quarter bookings.
The company is benefiting from OIG’s strong traction, which at the end of the fiscal fourth quarter had 2000 customers. Okta’s neutral and independent identity solution secures and governs the entire agentic life cycle. It gives customers the freedom to deploy on any agent platform without ecosystem lock-in. Auth0 and Okta for AI Agents treat AI agents with the same importance as humans and give customers everything they need to secure the deployment of agentic AI technology.
Okta is benefiting from a rich partner base that includes the likes of Amazon Web Services (“AWS”), CrowdStrike, Google, LexisNexis Risk Solutions, Microsoft, Netskope, Palo Alto Networks, Plaid, Proofpoint, Salesforce, ServiceNow, VMware, Workday, Yubico and Zscaler. Okta and Palo Alto Networks have expanded their partnership that combines Okta Workforce Identity and Palo Alto Networks’ Prisma Access Browser. Integration between Identity Threat Protection with Okta AI and Palo Alto Networks AI-driven Cortex SecOps platform offers organizations a unified view of identity-related risks across their entire attack surface.
Okta’s channel partners were engaged in 18 of the company’s top 20 deals in the fourth quarter of fiscal 2026. Total contract value generated through AWS Marketplace grew more than 45% in fiscal 2026 to approximately $750 million.
Here’s Why OKTA Is a Buy Now
OKTA’s innovative portfolio and rich partner base are helping the company win clients. These drivers also justify a premium valuation as suggested by the Value Score of D.
In terms of forward 12-month price/sales (P/S), Okta is trading at 4.46X, close to a median of 5.31X. However, OKTA is cheaper than Microsoft, Cisco and Palo Alto Networks, shares of which are trading at 8.45X, 4.92X, and 10.78X, respectively.
OKTA Stock’s Valuation
Image Source: Zacks Investment Research
Okta currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Okta Shares Rise 13% Post Q4 Earnings: Should You Invest Now?

In early trading on Monday, shares of Procter & Gamble topped the list of the day's best performing Dow Jones Industrial Average components, trading up 0.7%. Year to date, Procter & Gamble registers a 7.9% gain.
And the worst performing Dow component thus far on the day is Cisco Systems, trading down 2.9%. Cisco Systems is lower by about 0.9% looking at the year to date performance.
Two other components making moves today are Home Depot, trading down 2.5%, and Johnson & Johnson, trading up 0.4% on the day.
VIDEO: Dow Movers: CSCO, PG
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Indicator	TTM Median
P/E	28.58 32.97
Price/Sales	5.37 2.74
P/B	6.11 2.91
P/FCF	22.80 25.15

Indicator	TTM Median
ROE	23.64 15.26
ROA	8.53 6.61
ROI	15.20 10.28
Net Worth	316.57 1.11
Quick Ratio	0.85 1.59
Current Ratio	0.96 1.88

Indicator	TTM Median
Net Profit Margin	18.76 9.90
Operating Margin	22.75 11.51
Gross Margin	64.81 49.81
Return on tangible equity	0.00 28.81

Indicator	TTM Median
EPS	0.88 0.26
EPS Forecast	0.82 0.23
Revenue	14.88B 74.00M
Gross Profit	9.75B —
EBITDA	3.97B —

Cisco Systems, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

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Revenue