NEW YORK, June 27, 2026, 12:01 EDT
- Cisco Systems, Inc. NASDAQ:CSCO dropped 4.37% to $113.77 on Friday. Volume hit 51.64 million shares, about 216% of the 65-day average.
- The stock’s $5.20 decline worked out to roughly 32 Dow points in the red based on MarketWatch’s version of Dow math. That was a big factor as the Dow lost 44.51 points on Friday.
- Cisco’s up 47.70% on the year but fell 6.39% in the past five days as the AI-networking rally backed off.
- U.S. equity and options markets will be closed July 3 next week for the Independence Day holiday. Next week is a shortened one.
Cisco Systems, Inc. NASDAQ:CSCO sold off hard on Friday, dragging on the Dow Jones Industrial Average. The decline stood out from the indexes, which were less clear. The slump in Cisco shares was sharp and focused.
The stock dropped $5.20, or 4.37%, to $113.77. Volume was 51.64 million shares, more than twice the 65-day average of 23.89 million. Shares touched $112.86 at the low. The close leaves the stock 12.7% off its 52-week high of $130.37.
The index math was simple. MarketWatch said every $1 change in a Dow stock equals around 6.16 Dow points. Cisco’s drop knocked off about 32 Dow points. The Dow ended Friday down 44.51 points at 51,876.11.
Cisco is getting treated more like an AI infrastructure name than an old-line networking stock. On Friday, when the chip and AI trade broke down, Cisco’s tape saw heavier selling, not just movement with the index.
S&P 500 barely moved on Friday, ticking down just under 0.1%. Dow also slipped 0.1%. The Nasdaq Composite came down 0.2%. But over the week, growth names saw sharper losses. S&P 500 dropped 2% this week, Nasdaq slid 4.6%.
PHLX chip index dropped 5.3% on Friday and slid 7.9% this week, marking its sharpest weekly loss since early April, according to Reuters. “Questions around profitability and the capex story are certainly not going away,” David Stubbs, chief investment strategist at AlphaCore Wealth Advisory, told Reuters. Reuters
Cisco reported a solid quarter in May, posting record Q3 revenue of $15.8 billion, up 12%. The company said AI infrastructure orders from hyperscalers hit $5.3 billion year to date. Cisco now sees fiscal 2026 AI infrastructure orders at $9 billion, up from its earlier view of $5 billion.
Chair and CEO Chuck Robbins said at the time that Cisco was seeing “very strong, broad-based demand.” CFO Mark Patterson pointed to “record non-GAAP operating income.” The company gave fourth-quarter revenue guidance of $16.7 billion to $16.9 billion, and set fiscal 2026 revenue at $62.8 billion to $63.0 billion. Cisco Investor Relations
Price discipline is the key topic this week. Cisco closed Friday with a market cap of around $448.42 billion and a P/E ratio of 37.09. That valuation doesn’t leave much space for questions over AI order conversion, margins, or customer spending.
Art Hogan, chief market strategist at B. Riley Wealth, told Reuters that memory costs are causing “renewed inflationary pressure.” That’s an issue for Cisco, which sells into data centers and enterprise networks. Hardware budgets there are tight and tied to the AI capex debate. Reuters
U.S. markets have four sessions next week. Nasdaq’s 2026 calendar shows markets shut July 3 for Independence Day observed. Cisco’s ex-dividend date is July 6 for its $0.42 payout, according to the Nasdaq.
