Cisco vs T-Mobile

Cisco Systems, Inc. and T-Mobile US, Inc. are presented to help readers compare how each company operates, generates revenue, and positions itself in the market. This page examines business models, financial performance, and market context in a neutral, accessible manner for clear understanding. Educational content, not financial advice.

Cisco Systems, Inc. and T-Mobile US, Inc. are presented to help readers compare how each company operates, generates revenue, and positions itself in the market. This page examines business models, fi...

Comparison Snapshot

Key Financial Metrics

CSCO

Metric

TMUS

$304.27B

Market Cap

$210.23B

3.87%

Potential Profit

40.44%

Buy

Analyst Rating

Buy

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.

Sentiment:

🐃Bullish

T-Mobile Hits One-Year Low as Analysts Slash Targets Amid Debt Moves.

Bernstein lowered its price target to $245 with a 'market perform' rating, while Citigroup cut to $220 and BNP Paribas to $275, signaling cooling optimism on growth.
Wells Fargo trimmed its target from $260 to $225 but held an 'overweight' rating, as the stock tests attractive valuations after share weakness.
T-Mobile announced a proposed senior notes offering to refinance debt and plans to redeem 4.750% notes due 2028, sparking concerns over capital structure in a tough telecom environment.

Sentiment:

🐻Bearish

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.

Sentiment:

🐃Bullish

T-Mobile Hits One-Year Low as Analysts Slash Targets Amid Debt Moves.

Bernstein lowered its price target to $245 with a 'market perform' rating, while Citigroup cut to $220 and BNP Paribas to $275, signaling cooling optimism on growth.
Wells Fargo trimmed its target from $260 to $225 but held an 'overweight' rating, as the stock tests attractive valuations after share weakness.
T-Mobile announced a proposed senior notes offering to refinance debt and plans to redeem 4.750% notes due 2028, sparking concerns over capital structure in a tough telecom environment.

Sentiment:

🐻Bearish

Investment Analysis

Cisco

CSCO

Pros

Cisco has a robust financial position with a strong gross margin of over 65% and EBITDA nearing $14.74 billion.
The company is strategically shifting towards AI and advanced networking, with over $600 million in AI orders indicating growth potential.
Cisco provides a stable dividend with a yield around 2.5% and a consistent dividend growth rate over the past decade.

Considerations

Cisco's valuation metrics such as P/E ratio and price-to-book are significantly higher than sector averages, indicating potential overvaluation.
The company faces intense competition and geopolitical challenges that could pressure margins and growth prospects.
Stock performance has shown mixed returns recently, remaining below its 52-week high, which may reflect market concerns about growth execution.

T-Mobile

TMUS

Pros

T-Mobile maintains a strong market position in the US wireless sector with significant revenue and EBITDA growth reflecting operational strength.
Its stock price remains resilient above the 52-week low, supporting market confidence despite sector cyclicality.
T-Mobile benefits from ongoing 5G network expansion, which is a key driver for future growth and customer base expansion.

Considerations

The wireless industry’s high capital expenditure requirements may pressure free cash flow and balance sheet flexibility for T-Mobile.
T-Mobile’s stock has experienced notable price volatility, with its 52-week high substantially above current levels, indicating investor uncertainty.
Regulatory risks and competition from larger incumbents and new entrants may constrain profit margins and growth potential.

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