Cisco Systems (NASDAQ:CSCO) Issues Earnings Results

Cisco Systems (NASDAQ:CSCO) posted its quarterly earnings data on Wednesday. The network equipment provider reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.17 by $0.05, FiscalAI reports. The company had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.82 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. Cisco Systems updated its FY 2027 guidance to 5.050-5.110 EPS and its Q1 2027 guidance to 1.320-1.340 EPS.

Cisco Systems Stock Up 2.9%

NASDAQ:CSCO traded up $3.45 during mid-day trading on Wednesday, reaching $123.88. The stock had a trading volume of 31,447,182 shares, compared to its average volume of 23,437,350. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. The company has a market capitalization of $488.26 billion, a price-to-earnings ratio of 40.22, a price-to-earnings-growth ratio of 2.76 and a beta of 1.02. Cisco Systems has a 1-year low of $65.75 and a 1-year high of $130.37. The stock’s 50 day simple moving average is $117.61 and its two-hundred day simple moving average is $98.38.

Wall Street Analyst Weigh In

Several research firms recently commented on CSCO. Weiss Ratings upgraded Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 29th. KeyCorp raised their price objective on Cisco Systems from $125.00 to $130.00 and gave the company an “overweight” rating in a research note on Thursday, June 25th. Bank of America lifted their price objective on Cisco Systems from $135.00 to $150.00 and gave the stock a “buy” rating in a report on Monday, June 8th. Wells Fargo & Company upped their target price on Cisco Systems from $95.00 to $130.00 and gave the company an “overweight” rating in a research report on Thursday, May 14th. Finally, Morgan Stanley raised their price target on shares of Cisco Systems from $120.00 to $130.00 and gave the stock an “overweight” rating in a research report on Friday, June 12th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $123.14.

Key Cisco Systems News

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.

Insider Activity

In related news, EVP Thimaya K. Subaiya sold 7,127 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total transaction of $854,598.57. Following the sale, the executive vice president directly owned 140,857 shares of the company’s stock, valued at approximately $16,890,162.87. This represents a 4.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the transaction, the chief executive officer owned 637,085 shares in the company, valued at $76,469,312.55. This trade represents a 3.25% 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 a total of 47,650 shares of company stock valued at $5,668,823 over the last three months. Company insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD grew its holdings in Cisco Systems by 103.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 29,289,151 shares of the network equipment provider’s stock worth $2,256,144,000 after acquiring an additional 14,874,407 shares during the period. Victory Capital Management Inc. lifted its holdings in Cisco Systems by 15.7% in the 4th quarter. Victory Capital Management Inc. now owns 21,102,912 shares of the network equipment provider’s stock valued at $1,625,558,000 after acquiring an additional 2,867,520 shares during the last quarter. Credit Agricole S A bought a new position in shares of Cisco Systems during the 3rd quarter valued at about $138,802,000. Northern Trust Corp boosted its position in shares of Cisco Systems by 3.5% during the 3rd quarter. Northern Trust Corp now owns 48,498,612 shares of the network equipment provider’s stock valued at $3,318,275,000 after purchasing an additional 1,631,703 shares in the last quarter. Finally, NewEdge Advisors LLC grew its stake in shares of Cisco Systems by 301.6% in the 4th quarter. NewEdge Advisors LLC now owns 2,081,451 shares of the network equipment provider’s stock worth $160,334,000 after purchasing an additional 1,563,117 shares during the last quarter. 73.33% of the stock is currently owned by institutional investors.

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.