Cisco Systems (NASDAQ:CSCO) Issues Q1 2027 Earnings Guidance

Cisco Systems (NASDAQ:CSCO) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 1.320-1.340 for the period, compared to the consensus EPS estimate of 1.110. The company issued revenue guidance of $18.0 billion-$18.2 billion, compared to the consensus revenue estimate of $16.7 billion. Cisco Systems also updated its FY 2027 guidance to 5.050-5.110 EPS.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on CSCO shares. Citigroup increased their price objective on shares of Cisco Systems from $90.00 to $112.00 and gave the company a “buy” rating in a research note on Thursday, May 14th. Rosenblatt Securities upped their target price on shares of Cisco Systems from $150.00 to $165.00 and gave the company a “buy” rating in a research note on Thursday. Wells Fargo & Company raised their price target on shares of Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday. Morgan Stanley upped their price objective on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, CICC Research raised their target price on Cisco Systems from $96.00 to $125.00 and gave the stock an “outperform” rating in a research report on Monday, May 18th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, Cisco Systems currently has a consensus rating of “Moderate Buy” and an average target price of $130.24.

Cisco Systems Stock Performance

NASDAQ CSCO opened at $113.47 on Friday. Cisco Systems has a 1-year low of $65.75 and a 1-year high of $130.37. The company has a 50 day moving average of $117.23 and a 200-day moving average of $99.00. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The firm has a market cap of $447.24 billion, a price-to-earnings ratio of 33.97, a PEG ratio of 2.79 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO) last announced its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping the consensus estimate of $1.17 by $0.05. Cisco Systems had a return on equity of 30.54% and a net margin of 20.95%.The business had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same period in the previous year, the business earned $0.99 EPS. Cisco Systems’s revenue was up 17.6% compared to the same quarter last year. 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. On average, equities analysts forecast that Cisco Systems will post 4 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be paid a $0.42 dividend. The ex-dividend date is Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio (DPR) is 54.55%.

Insider Activity at Cisco Systems

In related news, EVP Oliver Tuszik sold 2,607 shares of the company’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $121.12, for a total transaction of $315,759.84. Following the transaction, the executive vice president owned 172,727 shares in the company, valued at $20,920,694.24. This represents a 1.49% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the stock in a transaction dated 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 in the company, valued at approximately $16,890,162.87. This represents a 4.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 31,134 shares of company stock valued at $3,739,000 over the last ninety days. 0.01% of the stock is owned by insiders.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Cisco exceeded estimates with fiscal Q4 non-GAAP earnings of $1.22 per share versus $1.17 expected, while revenue rose 18% year over year to approximately $17.3 billion, above the roughly $16.8 billion consensus. Cisco Reports Fourth Quarter and Fiscal Year 2026 Earnings
• Positive Sentiment: AI infrastructure demand remains a major growth catalyst. Cisco received $9.3 billion in hyperscaler AI orders during fiscal 2026, including $4 billion in Q4, and expects about $7.5 billion of related revenue in fiscal 2027. Networking product orders increased 40% year over year. Chuck Robbins Says AI Is Fueling a Networking Supercycle
• Positive Sentiment: Management forecast fiscal Q1 revenue of $18.0 billion to $18.2 billion and non-GAAP EPS of $1.32 to $1.34. Fiscal 2027 revenue guidance of $72.2 billion to $73.4 billion and EPS of $5.05 to $5.11 also exceeded analyst expectations. Cisco Forecasts Upbeat Annual Revenue
• Positive Sentiment: Several analysts raised their price targets, including Wells Fargo to $150, Rosenblatt to $165, UBS to $138 and Truist to $140, maintaining bullish ratings despite the market reaction. Analysts Raise Forecasts on Cisco
• Neutral Sentiment: Cisco declared a quarterly dividend of $0.42 per share, payable October 21 to shareholders of record October 2.
• Negative Sentiment: Investors remain concerned that AI-related growth could pressure profitability. Analysts highlighted squeezed gross margins and questioned whether Cisco’s AI acceleration can justify its premium valuation. Cisco Stock Falls on Margin Concerns
• Negative Sentiment: The earnings beat and guidance apparently did not clear the market’s high bar. Some analysts described the outlook as conservative relative to current demand, while services revenue reportedly missed expectations, intensifying skepticism about longer-term growth.

Institutional Investors Weigh In On Cisco Systems

Several hedge funds and other institutional investors have recently made changes to their positions in CSCO. Mcguire Capital Advisors Inc. bought a new stake in shares of Cisco Systems during the fourth quarter worth $100,000. Birchwood Financial Partners Inc. bought a new stake in Cisco Systems during the 4th quarter worth about $49,000. Alberta Investment Management Corp bought a new stake in Cisco Systems during the 4th quarter worth about $200,000. Strive Financial Group LLC acquired a new position in Cisco Systems during the 4th quarter valued at about $57,000. Finally, First Commonwealth Financial Corp PA lifted its position in Cisco Systems by 0.9% during the 4th quarter. First Commonwealth Financial Corp PA now owns 13,656 shares of the network equipment provider’s stock valued at $1,052,000 after purchasing an additional 128 shares during the period. 73.33% of the stock is owned by institutional investors and hedge funds.

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.