Cisco vs IBM
Cisco vs IBM: this page compares their business models, financial performance, and market context in a neutral, accessible way. It describes growth approaches, technology strategy, and competitive positioning without making forecasts or endorsements. The content is intended to inform understanding rather than guide investment decisions. Educational content, not financial advice.
Cisco vs IBM: this page compares their business models, financial performance, and market context in a neutral, accessible way. It describes growth approaches, technology strategy, and competitive pos...
Why It's Moving
Cisco customers spotlight AI innovations as networking powerhouse gears up for Q1 earnings spotlight.
- Customers in 'Tech Unscripted' series praise Cisco's low-cost AI pilots and predictive threat detection, boosting confidence in its future-proof tech stack.
- Q1 fiscal 2026 results showed 7.53% YOY revenue growth and over 108% free cash flow surge, signaling robust demand for AI-powered networking hardware.
- Wall Street consensus leans Moderate Buy with 17 Buy ratings, viewing recent pullback as undervaluation amid Cisco's cybersecurity push via Splunk.
IBM Shares Dip Slightly Amid Debate Over Premium Valuation After Stellar Multi-Year Gains.
- Stock declined 1.6% in the last 7 days and 1.7% over 30 days, despite 37% yearly surge and strong 2025 performance.
- Valuation scores low at 1/6 on key metrics, with intrinsic value estimates around $277-294 versus current levels near $298.
- Analysts highlight IBM as a 2026 top pick, citing hybrid cloud, AI dominance, and robust cash flow with 55-year dividend streak.
Cisco customers spotlight AI innovations as networking powerhouse gears up for Q1 earnings spotlight.
- Customers in 'Tech Unscripted' series praise Cisco's low-cost AI pilots and predictive threat detection, boosting confidence in its future-proof tech stack.
- Q1 fiscal 2026 results showed 7.53% YOY revenue growth and over 108% free cash flow surge, signaling robust demand for AI-powered networking hardware.
- Wall Street consensus leans Moderate Buy with 17 Buy ratings, viewing recent pullback as undervaluation amid Cisco's cybersecurity push via Splunk.
IBM Shares Dip Slightly Amid Debate Over Premium Valuation After Stellar Multi-Year Gains.
- Stock declined 1.6% in the last 7 days and 1.7% over 30 days, despite 37% yearly surge and strong 2025 performance.
- Valuation scores low at 1/6 on key metrics, with intrinsic value estimates around $277-294 versus current levels near $298.
- Analysts highlight IBM as a 2026 top pick, citing hybrid cloud, AI dominance, and robust cash flow with 55-year dividend streak.
Investment Analysis
Cisco
CSCO
Pros
- Cisco maintains a leading position in networking hardware and software, with recurring revenue from subscriptions bolstering financial stability.
- The company has a consistent dividend history, offering a yield above 2.5% and a multi-year track record of payout growth.
- Cisco’s balance sheet is robust, with significant cash reserves and moderate debt supporting flexibility for strategic investments and shareholder returns.
Considerations
- Revenue growth has been modest recently, reflecting slower enterprise spending and heightened competition in core networking markets.
- Transition to software and services remains ongoing, with execution risks as legacy hardware sales continue to dominate the mix.
- Valuation multiples are above historical averages, potentially limiting near-term upside if earnings growth does not accelerate.
IBM
IBM
Pros
- IBM has transformed its business mix toward higher-margin cloud, AI, and consulting services, driving improved profitability and growth visibility.
- The company offers a reliable dividend, currently yielding over 2.3%, supported by strong free cash flow generation.
- IBM’s global scale and entrenched enterprise relationships provide a stable revenue base and cross-selling opportunities for new technologies.
Considerations
- IBM carries a higher debt load relative to equity, leading to elevated financial leverage and interest expense pressures.
- Revenue growth, while improving, remains subdued compared to faster-growing tech peers, limiting re-rating potential.
- Transformation initiatives such as hybrid cloud and AI face intense competition from larger, more agile rivals with greater resources.
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Cisco (CSCO) Next Earnings Date
Cisco Systems' next earnings release is scheduled for February 11, 2026, when the company will report results for its Q2 fiscal year 2026. Analysts are currently forecasting earnings per share of approximately $1.02 for this period. The earnings announcement will be followed by a conference call at 4:30 PM ET to discuss financial performance and forward guidance.
IBM (IBM) Next Earnings Date
IBM's next earnings date is Wednesday, January 28, 2026, with the conference call scheduled for 5:00 p.m. ET following the release of financial results after market close. This report will cover the fourth quarter of 2025. Investors should monitor the company's investor relations site for the press release and webcast details ahead of the event.
Cisco (CSCO) Next Earnings Date
Cisco Systems' next earnings release is scheduled for February 11, 2026, when the company will report results for its Q2 fiscal year 2026. Analysts are currently forecasting earnings per share of approximately $1.02 for this period. The earnings announcement will be followed by a conference call at 4:30 PM ET to discuss financial performance and forward guidance.
IBM (IBM) Next Earnings Date
IBM's next earnings date is Wednesday, January 28, 2026, with the conference call scheduled for 5:00 p.m. ET following the release of financial results after market close. This report will cover the fourth quarter of 2025. Investors should monitor the company's investor relations site for the press release and webcast details ahead of the event.
Which Baskets Do They Appear In?
Data Reliability Safety Net
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Explore BasketProfit Sharers
These established market leaders don't just generate impressive profits—they're committed to sharing that wealth with you. Carefully selected by our analysts, these dividend powerhouses offer both reliable income streams and the stability of industry-leading businesses.
Published: June 17, 2025
Explore BasketWhich Baskets Do They Appear In?
Data Reliability Safety Net
Invest in the essential technology providers that ensure data remains trustworthy in our digital world. These carefully selected companies build the foundation for reliable analytics and AI systems that businesses increasingly depend on.
Published: June 17, 2025
Explore BasketProfit Sharers
These established market leaders don't just generate impressive profits—they're committed to sharing that wealth with you. Carefully selected by our analysts, these dividend powerhouses offer both reliable income streams and the stability of industry-leading businesses.
Published: June 17, 2025
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