Cisco finally breaks free of the dot-com curse after 25 years
It has been a painful few decades for investors in Cisco Systems Inc. (CSCO), the global networking giant that reached its peak during the dot-com bubble and then spent years trading well below its all-time high.
Now, for the first time since that era of euphoria, Cisco shares are trading above $80, a level not seen since early 2000.
The milestone was first highlighted by Brew Markets, which noted that despite Cisco’s strong gains this year, the stock has only recently managed to reclaim its peak valuation from more than two decades ago.
Cisco has officially recovered from the 2000 dot-com crash. pic.twitter.com/P2fpEAz1ID
undefined Brew Markets (@brewmarkets) December 10, 2025
On paper, Cisco should have participated more fully in the broader tech rally, which has intensified at various points over the past decade.
Instead, the company has long been viewed as a mature business rather than a growth story. Revenue growth has typically hovered in the low single digits, far below the 15% to 40% — and sometimes higher — growth rates seen among cloud, AI, and software-focused technology companies.
Cisco’s core business model centers on selling networking hardware, such as routers, switches, and enterprise infrastructure, supplemented by maintenance contracts, licensing, and security services.
While highly profitable, this hardware-heavy mix has limited the company’s exposure to the software-driven, recurring-revenue models that fueled much of the tech sector’s expansion before the recent data center and AI infrastructure boom.
At the same time, Cisco arrived relatively late to major growth waves in cloud computing, mobile networking, and software-as-a-service, often participating as a supplier rather than a platform leader.
That said, Cisco appears to have turned a corner in 2025. A greater emphasis on software subscriptions and AI-related networking infrastructure has helped reignite growth and strengthen the company’s outlook, supporting a market capitalization that now exceeds $300 billion.
Cisco shares hit record highs as earnings and revenue accelerate
Cisco’s share price has accelerated for much of 2025, having recently closed just above $80 and lifting its year-to-date gain to roughly 32%.
While Cisco shareholders haven’t historically benefited from large capital appreciation, the company has consistently returned cash to investors.
The stock currently offers a dividend yield of approximately 2.1%, which is above the average for the technology sector, and the dividend has increased for 13 consecutive years, according to industry data.
That shareholder return has been supported by an improving business. Cisco reported fourth-quarter revenue of $14.7 billion, up 8% year over year, while full fiscal-year revenue rose 5% to $56.7 billion.
Adjusted earnings came in at 99 cents per share during the fourth quarter, slightly ahead of Wall Street expectations.
Looking ahead, Cisco expects adjusted earnings per share of up to $4.06 in fiscal 2026, on revenue of up to $60 billion. The company appears to be on track to meet those targets, with fiscal first-quarter revenue rising 8%.