New York, Jan 9, 2026, 20:08 EST — Market closed.
- The U.S. Supreme Court has agreed to hear Cisco’s appeal in a lawsuit connected to China’s Falun Gong crackdown
- Cisco shares dipped roughly 0.1% on Friday, underperforming the wider market rally
- Investors are eyeing next week’s U.S. inflation report and Cisco’s earnings call on Feb. 11
Cisco Systems shares slipped slightly on Friday after the U.S. Supreme Court agreed to hear the company’s appeal in a lawsuit claiming it aided China in targeting Falun Gong practitioners. The stock closed down about 0.1% at $73.88. A Cisco spokesperson said the company welcomed the court’s decision and looked forward to oral arguments. 1
The legal headline hits as U.S. stocks kick off 2026 on a strong note, valuations already running high with limited space for surprises. The S&P 500 closed at a record high on Friday, shrugging off a softer-than-expected U.S. jobs report that failed to dent hopes for rate cuts, though Cisco ended the day lower. 2
The case centers on whether U.S. courts can hear lawsuits against American firms for alleged human-rights violations overseas under statutes like the Alien Tort Statute and the Torture Victim Protection Act. Plaintiffs claim Cisco customized technology that was later used to identify and target Falun Gong practitioners. Cisco counters that it shouldn’t be held responsible for these allegations. At its core, the issue is whether “aiding and abetting” — assisting another party in wrongdoing — suffices to keep the lawsuit alive. 3
Friday’s decline deepened the recent slide in Cisco’s shares. The stock had already dropped for eight straight sessions through Thursday and now sits roughly 8% below its 52-week peak of $80.82, reached Dec. 10, per MarketWatch data. Among network-security names, Fortinet gained about 1.5%, while Palo Alto Networks slipped nearly 0.9%. 4
Macro risks stand shoulder to shoulder with company-specific ones. Wall Street faces a quick double whammy: December’s Consumer Price Index drops Tuesday, Jan. 13, the same day major U.S. banks start reporting quarterly earnings. “On balance for this year, the foundation for the market is solid,” said Michael Arone, chief investment strategist at State Street Investment Management, though he cautioned the calendar could bring more volatility. 5
Cisco’s key question remains whether AI-driven demand will extend into 2026. Back in November, the company upped its fiscal 2026 revenue and adjusted profit forecast, banking on AI-related networking gear tied to data-center growth at major cloud providers. CEO Chuck Robbins mentioned a “growing pipeline” surpassing $2 billion for high-performance networking products. Meanwhile, Ryan Lee, senior VP of product and strategy at Direxion, described the AI surge as a “nice sales catalyst” for Cisco’s mature networking business. 6
Cisco announced it will pay a quarterly dividend of $0.41 per share on Jan. 21, according to its latest earnings release. 7
Still, the Supreme Court’s upcoming review looms, with potential to swing either way. A decision that restricts or widens the scope for overseas human-rights claims against corporations could have fallout beyond Cisco. It would stir up uncertainty over how investors weigh litigation and reputational risks in major tech stocks. 8
Traders are now shifting their focus to the calendar rather than the courts: Cisco’s next quarterly earnings call for its second-quarter fiscal 2026 results is set for Wednesday, Feb. 11, at 4:30 p.m. Eastern, per the prepared remarks from its previous earnings call.
