Cisco Systems (NASDAQ:CSCO) Shares Down 1.7% – Here’s What Happened

Cisco Systems, Inc. (NASDAQ:CSCO) shares fell 1.7% on Tuesday . The company traded as low as $120.12 and last traded at $120.43. Approximately 16,268,120 shares traded hands during trading, a decline of 31% from the average daily volume of 23,407,471 shares. The stock had previously closed at $122.57.

More Cisco Systems News

Here are the key news stories impacting Cisco Systems this week:

• Positive Sentiment: Analysts expect fourth-quarter revenue of approximately $16.85 billion and adjusted EPS of $1.17, implying mid-to-high-teen growth in both measures. Investors will be watching whether networking demand, AI infrastructure spending and the Splunk integration can support continued momentum. Cisco earnings preview: where options data suggest CSCO is headed
• Positive Sentiment: Cisco is rolling out personalized AI agents to its approximately 90,000 employees, investing in supporting infrastructure and setting AI-driven revenue targets. The initiative could improve productivity and create new revenue streams, reinforcing the company’s positioning in enterprise AI networking. Cisco puts 90,000 workers on personalized AI agents
• Neutral Sentiment: Options activity and recent technical commentary suggest investors expect Cisco to remain in a relatively tight trading range around earnings, despite analysts raising price targets. This points to uncertainty about the size of any post-earnings move rather than a clear directional signal. Cisco Systems is in a trading range ahead of earnings
• Negative Sentiment: Pre-earnings caution reflects risks including higher memory costs, competition, and the pace and expense of Splunk’s cloud transition. Any weaker-than-expected guidance or evidence that AI-related growth is already priced into CSCO could pressure the stock. Should Buy, Sell or Hold Cisco Stock Before Q4 Earnings?

Wall Street Analyst Weigh In

A number of brokerages have issued reports on CSCO. CICC Research raised their price objective on shares of Cisco Systems from $96.00 to $125.00 and gave the company an “outperform” rating in a research note on Monday, May 18th. The Goldman Sachs Group upped their target price on shares of Cisco Systems from $116.00 to $125.00 and gave the company a “neutral” rating in a research report on Wednesday, June 3rd. New Street Research increased their price target on Cisco Systems from $82.00 to $122.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. BNP Paribas Exane raised their price target on Cisco Systems from $87.00 to $132.00 and gave the stock an “outperform” rating in a research report on Thursday, May 14th. Finally, Citigroup lifted their price objective on Cisco Systems from $90.00 to $112.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Cisco Systems has a consensus rating of “Moderate Buy” and a consensus price target of $123.14.

Cisco Systems Stock Down 1.7%

The firm has a market cap of $474.79 billion, a P/E ratio of 39.11, a price-to-earnings-growth ratio of 2.74 and a beta of 1.02. The firm’s 50 day moving average is $117.77 and its two-hundred day moving average is $98.05. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40.

Cisco Systems (NASDAQ:CSCO) last issued its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating the consensus estimate of $1.03 by $0.03. The firm had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business’s quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.96 earnings per share. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. As a group, research analysts anticipate that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th were given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Monday, July 6th. Cisco Systems’s payout ratio is currently 54.55%.

Insider Buying and Selling

In related news, insider Jeetendra I. Patel sold 7,169 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.28, for a total transaction of $840,780.32. Following the completion of the transaction, the insider directly owned 246,737 shares of the company’s stock, valued at approximately $28,937,315.36. This represents a 2.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the transaction, the executive vice president directly owned 140,857 shares of the company’s stock, valued at $16,890,162.87. This represents a 4.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 47,650 shares of company stock worth $5,668,823 over the last three months. Company insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors have recently made changes to their positions in the company. MidAtlantic Capital Management Inc. acquired a new position in Cisco Systems in the 4th quarter valued at $25,000. Intesa Sanpaolo Wealth Management bought a new position in shares of Cisco Systems in the 4th quarter valued at $25,000. Networth Advisors LLC boosted its stake in shares of Cisco Systems by 276.4% during the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after purchasing an additional 246 shares in the last quarter. Financial Life Planners bought a new stake in Cisco Systems during the 1st quarter worth approximately $27,000. Finally, Manning & Napier Advisors LLC grew its stake in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after purchasing an additional 200 shares during the last quarter. Institutional investors own 73.33% of the company’s stock.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.