Cisco Systems (NASDAQ:CSCO) Shares Up 2.9% Following Strong Earnings

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) were up 2.9% during trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $124.45 and last traded at $123.88. Approximately 32,168,044 shares were traded during trading, an increase of 37% from the average session volume of 23,437,350 shares. The stock had previously closed at $120.43.

The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The company had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.82 billion. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS.

Cisco Systems News Roundup

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

• Positive Sentiment: Cisco has raised its full-year outlook for AI infrastructure orders and is expanding its AI strategy through conference presentations, infrastructure investments and company-wide model routing. The developments support the view that AI networking is becoming a larger growth driver. Does Cisco’s Expanded AI Infrastructure Orders and Employee Agents Change The Bull Case For Cisco Systems
• Positive Sentiment: The rollout of personalized AI agents to approximately 90,000 employees, combined with specific AI-related revenue targets, signals that Cisco is attempting to convert internal AI adoption into measurable efficiency gains and new revenue streams. Cisco Puts 90,000 Workers On Personalized AI Agents With New Revenue Targets
• Positive Sentiment: Investors are expecting continued strong results after Cisco’s prior quarterly revenue and adjusted EPS exceeded consensus estimates, with analysts looking for roughly mid-to-high-teen growth in the upcoming quarter. How Much Traders Expect Cisco Stock to Move After Earnings
• Neutral Sentiment: Options markets imply an unusually large post-earnings move of approximately 8%, highlighting significant event risk as investors await management’s guidance on AI orders, networking demand and margins. Cisco Options Chain Braces for an 8% Earnings Swing
• Neutral Sentiment: In-line July CPI data helped support broader U.S. equity futures and reduced concern about an inflation-driven shift in interest-rate expectations, providing a favorable market backdrop for CSCO.
• Negative Sentiment: With Cisco trading near its 52-week high and at a relatively elevated earnings multiple, strong AI orders and guidance may already be reflected in the valuation, increasing the risk of a sell-the-news reaction if results or forecasts disappoint.

Wall Street Analysts Forecast Growth

CSCO has been the subject of a number of analyst reports. BNP Paribas Exane boosted their target price on shares of Cisco Systems from $87.00 to $132.00 and gave the stock an “outperform” rating in a research note on Thursday, May 14th. Piper Sandler lifted their price target on Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Zacks Research cut Cisco Systems from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Argus increased their price objective on Cisco Systems from $100.00 to $150.00 and gave the company a “buy” rating in a report on Tuesday, May 19th. Finally, Evercore raised their target price on Cisco Systems from $110.00 to $150.00 and gave the stock an “outperform” rating in a research report on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $123.14.

Insider Activity

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,169 shares of the firm’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $117.28, for a total transaction of $840,780.32. Following the transaction, the insider owned 246,737 shares of the company’s stock, valued at approximately $28,937,315.36. This trade represents a 2.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,586 shares of Cisco Systems stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $117.31, for a total value of $772,603.66. Following the sale, the executive vice president owned 177,223 shares in the company, valued at $20,790,030.13. This trade represents a 3.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders 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 Inflows and Outflows

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

Cisco Systems Stock Performance

The stock has a market cap of $488.26 billion, a PE ratio of 40.22, a price-to-earnings-growth ratio of 2.76 and a beta of 1.02. The stock has a fifty day moving average of $117.61 and a 200-day moving average of $98.38. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40.

About Cisco Systems

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.