Cisco vs Salesforce
Cisco generates reliable cash flow from a vast installed base of networking hardware and a growing software subscription business, while Salesforce dominates CRM and enterprise cloud applications with a recurring revenue model that keeps customers sticky. Both are large-cap technology companies with strong free cash flow and aggressive capital return programs, but they're executing on very different growth strategies. The Cisco vs Salesforce comparison explores how a hardware-to-software transition compares with a cloud-native growth franchise on revenue quality, margin expansion, and valuation.
Cisco generates reliable cash flow from a vast installed base of networking hardware and a growing software subscription business, while Salesforce dominates CRM and enterprise cloud applications with...
Why It's Moving
Cisco's 2026 Price Targets Signal Modest Pullback Amid Steady Networking Demand
- AI-powered forecasts highlight a slight decline, implying Cisco's growth may lag behind hotter AI pure-plays but offer defensive appeal.
- Current price stability at $78.36 underscores resilience in enterprise spending on networking gear amid economic uncertainty.
- Sector tailwinds from AI infrastructure buildout position CSCO to capture steady demand without explosive upside.
Analysts Eye Salesforce's Path to Stronger Growth Amid Solid Earnings Momentum
- Q2 fiscal 2026 revenue surged 10% to $10.2 billion, with subscription revenue up 11% to $9.7 billion, underscoring sustained demand for core cloud services.
- Earnings growth projected at 11.1% per annum and EPS at 12.2%, signaling improving efficiency and investor confidence in long-term profitability.
- Future return on equity forecast to reach 23.3% in three years, reflecting enhanced capital utilization as Salesforce balances growth and margins.
Cisco's 2026 Price Targets Signal Modest Pullback Amid Steady Networking Demand
- AI-powered forecasts highlight a slight decline, implying Cisco's growth may lag behind hotter AI pure-plays but offer defensive appeal.
- Current price stability at $78.36 underscores resilience in enterprise spending on networking gear amid economic uncertainty.
- Sector tailwinds from AI infrastructure buildout position CSCO to capture steady demand without explosive upside.
Analysts Eye Salesforce's Path to Stronger Growth Amid Solid Earnings Momentum
- Q2 fiscal 2026 revenue surged 10% to $10.2 billion, with subscription revenue up 11% to $9.7 billion, underscoring sustained demand for core cloud services.
- Earnings growth projected at 11.1% per annum and EPS at 12.2%, signaling improving efficiency and investor confidence in long-term profitability.
- Future return on equity forecast to reach 23.3% in three years, reflecting enhanced capital utilization as Salesforce balances growth and margins.
Investment Analysis
Cisco
CSCO
Pros
- Cisco reported a 5.3% revenue increase to $56.65 billion in 2025, evidencing steady top-line growth.
- The company maintains a strong profitability profile with $10.18 billion earnings in 2025 and a robust return on equity of 22.78%.
- Cisco offers a solid dividend yield of 2.3%, providing a reliable income stream to shareholders.
Considerations
- Earnings decreased slightly by 1.36% in 2025 despite revenue growth, indicating some margin pressure or higher costs.
- Recent insider selling and decreased insider ownership might signal management concerns about near-term performance.
- Cisco faces intense competition in the technology sector, posing risks to market share and long-term profitability.
Salesforce
CRM
Pros
- Salesforce operates a globally recognized customer relationship management platform that drives business digital transformation.
- The company has a consistent, though moderate, return on equity averaging around 5.8% over recent years.
- Salesforce benefits from strong market positioning in cloud-based software enabling recurring revenue and growth opportunities.
Considerations
- Salesforce’s return on equity of approximately 5.8% is significantly lower than many tech peers, suggesting lower profitability efficiency.
- The company’s market cap and financial metrics show slower growth relative to competitors with higher returns on equity.
- Salesforce’s stock performance and technical indicators show recent weakness, reflecting investor concerns about valuation and growth sustainability.
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Cisco (CSCO) Next Earnings Date
Cisco Systems (CSCO) is scheduled to report its next earnings on May 13, 2026 after market close, covering the Q3 fiscal year 2026 results. Analysts currently expect the company to report earnings per share of approximately $1.03 for this quarter. This earnings announcement will provide investors with updated financial performance and forward guidance for the coming period.
Salesforce (CRM) Next Earnings Date
Salesforce (CRM) is estimated to report its next earnings between May 27, 2026, and June 3, 2026, with some sources pinpointing May 27, 2026, though no official date has been announced yet. This release will cover the Q1 2027 period, following the company's historical pattern of late-May to early-June announcements for the first fiscal quarter. Investors should monitor for an official confirmation in the coming weeks.
Cisco (CSCO) Next Earnings Date
Cisco Systems (CSCO) is scheduled to report its next earnings on May 13, 2026 after market close, covering the Q3 fiscal year 2026 results. Analysts currently expect the company to report earnings per share of approximately $1.03 for this quarter. This earnings announcement will provide investors with updated financial performance and forward guidance for the coming period.
Salesforce (CRM) Next Earnings Date
Salesforce (CRM) is estimated to report its next earnings between May 27, 2026, and June 3, 2026, with some sources pinpointing May 27, 2026, though no official date has been announced yet. This release will cover the Q1 2027 period, following the company's historical pattern of late-May to early-June announcements for the first fiscal quarter. Investors should monitor for an official confirmation in the coming weeks.
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