Cisco Systems (NASDAQ:CSCO) Releases Earnings Results, Beats Estimates By $0.05 EPS

Cisco Systems (NASDAQ:CSCO) announced its quarterly earnings data on Wednesday. The network equipment provider reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.05, FiscalAI reports. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.82 billion. 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 Trading Up 2.9%

CSCO traded up $3.45 during trading on Wednesday, hitting $123.88. 31,447,182 shares of the company’s stock were exchanged, compared to its average volume of 23,437,350. 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 has a 1 year low of $65.75 and a 1 year high of $130.37. The stock has a 50 day moving average price of $117.61 and a 200 day moving average price of $98.38. The firm has a market cap of $488.26 billion, a P/E ratio of 40.22, a price-to-earnings-growth ratio of 2.76 and a beta of 1.02.

More 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.

Insiders Place Their Bets

In related news, CEO Charles Robbins sold 21,400 shares of the 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 completion of the sale, the chief executive officer directly owned 637,085 shares in the company, valued at approximately $76,469,312.55. This represents a 3.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through 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 firm’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total value of $854,598.57. Following the completion of the transaction, the executive vice president directly owned 140,857 shares in the company, valued at $16,890,162.87. This trade 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. In the last 90 days, insiders have sold 47,650 shares of company stock worth $5,668,823. 0.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cisco Systems

A number of large investors have recently modified their holdings of the stock. State Street Corp raised its holdings in shares of Cisco Systems by 0.5% during the 4th quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider’s stock valued at $15,060,995,000 after buying an additional 1,057,962 shares during the period. Morgan Stanley grew its position in Cisco Systems by 0.3% in the fourth quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider’s stock valued at $5,802,382,000 after acquiring an additional 206,352 shares in the last quarter. Bank of America Corp DE grew its position in Cisco Systems by 2.1% in the fourth quarter. Bank of America Corp DE now owns 52,148,049 shares of the network equipment provider’s stock valued at $4,016,964,000 after acquiring an additional 1,096,794 shares in the last quarter. Northern Trust Corp raised its stake in shares of Cisco Systems by 3.5% during the third 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 during the period. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of 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 valued at $2,256,144,000 after purchasing an additional 14,874,407 shares during the period. Institutional investors and hedge funds own 73.33% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Evercore upped their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the stock an “outperform” rating in a research report on Thursday, May 14th. HSBC upgraded shares of Cisco Systems from a “hold” rating to a “buy” rating and lifted their price target for the company from $77.00 to $137.00 in a report on Friday, May 15th. Wall Street Zen downgraded Cisco Systems from a “buy” rating to a “hold” rating in a report on Tuesday, July 28th. The Goldman Sachs Group increased their target price on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. Finally, Citic Securities lifted their target price on Cisco Systems from $90.00 to $130.00 in a report on Friday, May 15th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $123.14.

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.