Cisco Systems (NASDAQ:CSCO) Issues FY 2026 Earnings Guidance

Cisco Systems (NASDAQ:CSCO) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 4.130-4.170 for the period, compared to the consensus estimate of 3.800. The company issued revenue guidance of $61.2 billion-$61.7 billion, compared to the consensus revenue estimate of $60.7 billion. Cisco Systems also updated its Q3 2026 guidance to 1.020-1.040 EPS.

Cisco Systems Price Performance

Shares of NASDAQ CSCO traded down $8.30 during mid-day trading on Thursday, reaching $77.24. The company had a trading volume of 14,279,575 shares, compared to its average volume of 21,780,475. The company has a 50-day moving average price of $77.91 and a two-hundred day moving average price of $72.99. The stock has a market cap of $305.18 billion, a PE ratio of 29.04, a P/E/G ratio of 3.26 and a beta of 0.87. Cisco Systems has a 1-year low of $52.11 and a 1-year high of $88.18. The company has a current ratio of 0.93, a quick ratio of 0.83 and a debt-to-equity ratio of 0.46.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.02 by $0.02. The business had revenue of $15.35 billion during the quarter, compared to analyst estimates of $15.11 billion. Cisco Systems had a net margin of 18.38% and a return on equity of 27.29%. The firm’s revenue was up 9.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.94 earnings per share. On average, equities analysts anticipate that Cisco Systems will post 3.04 earnings per share for the current year.

Cisco Systems Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 22nd. Investors of record on Thursday, April 2nd will be given a dividend of $0.42 per share. This is a boost from Cisco Systems’s previous quarterly dividend of $0.41. The ex-dividend date is Thursday, April 2nd. This represents a $1.68 annualized dividend and a dividend yield of 2.2%. Cisco Systems’s dividend payout ratio is 61.65%.

Wall Street Analyst Weigh In

Several brokerages have issued reports on CSCO. BNP Paribas Exane lifted their price objective on Cisco Systems from $86.00 to $87.00 and gave the company an “outperform” rating in a research report on Thursday. Bank of America lifted their price target on shares of Cisco Systems from $85.00 to $95.00 and gave the company a “buy” rating in a research note on Thursday, November 13th. Citigroup boosted their price objective on shares of Cisco Systems from $85.00 to $90.00 and gave the stock a “buy” rating in a research note on Thursday. UBS Group lifted their target price on shares of Cisco Systems from $88.00 to $90.00 and gave the stock a “buy” rating in a report on Thursday, November 13th. Finally, Barclays increased their price target on Cisco Systems from $71.00 to $76.00 and gave the stock an “equal weight” rating in a research report on Thursday, November 13th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $94.73.

Insiders Place Their Bets

In related news, Director Kristina M. Johnson sold 13,481 shares of the stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $77.13, for a total value of $1,039,789.53. Following the completion of the sale, the director directly owned 61,630 shares of the company’s stock, valued at approximately $4,753,521.90. This represents a 17.95% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Maria Victoria Wong sold 428 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $80.33, for a total value of $34,381.24. Following the completion of the transaction, the senior vice president owned 32,176 shares in the company, valued at $2,584,698.08. The trade was a 1.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 1,044,865 shares of company stock valued at $81,397,635. 0.01% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Record Q2 revenue and beat on non‑GAAP EPS with raised full‑year guidance — Cisco reported ~$15.3B revenue and non‑GAAP EPS of $1.04, and raised FY26 revenue guidance to $61.2–$61.7B and non‑GAAP EPS to $4.13–$4.17, giving a clear demand signal (AI/hyperscaler strength). PR Newswire: Cisco Reports Second Quarter Earnings
• Positive Sentiment: New AI networking silicon — Cisco unveiled the Silicon One G300 (102.4Tbps) aimed at large AI clusters, positioning CSCO to capture infrastructure spending from hyperscalers and compete with Broadcom/Nvidia. This product announcement supports the revenue/AI narrative. InsiderMonkey: Silicon One G300 Announcement
• Positive Sentiment: Dividend rise — Cisco increased its quarterly dividend to $0.42 (2% raise), supporting the income-investor case and total‑return thesis. Press Release / Slide Deck
• Positive Sentiment: Analyst support — Rosenblatt reaffirmed a “buy” and $100 PT, reflecting continued analyst optimism and potential upside vs. current levels. Benzinga: Rosenblatt Rating
• Neutral Sentiment: Trade/tariff policy update — U.S. House moved to block tariffs on Canada; reduced trade-policy uncertainty could be modestly positive for tech supply chains but the direct impact on Cisco’s near-term results is unclear. YouTube: Canada Tariffs Override
• Negative Sentiment: Margin concerns from higher memory costs — Several outlets flagged that rising memory prices are pressuring gross margins; Cisco reported GAAP gross margin below some estimates and commentary on component cost pressure weighed on the stock. MSN: Memory Costs Pressure Margins
• Negative Sentiment: Mood mismatch — Despite beats and an upgraded full‑year outlook, investors reacted negatively to guidance that many saw as only in‑line (or conservative on margins), driving post‑close and premarket selling. Coverage notes and market commentary highlight the selloff. CNBC: Stock Drops on Forecast Reaction
• Negative Sentiment: Headline focus on gross‑margin metrics and cash‑flow/chip-costs — Media reports emphasizing below‑estimate gross margin and memory‑cost headwinds amplified selling despite top‑line momentum. MarketWatch: Investors Pan Earnings

Institutional Investors Weigh In On Cisco Systems

Hedge funds and other institutional investors have recently bought and sold shares of the business. Jessup Wealth Management Inc purchased a new position in Cisco Systems during the 4th quarter valued at about $29,000. WFA of San Diego LLC purchased a new stake in shares of Cisco Systems during the 2nd quarter valued at about $60,000. Wiser Advisor Group LLC bought a new position in shares of Cisco Systems during the 3rd quarter valued at $111,000. Triumph Capital Management bought a new stake in shares of Cisco Systems during the 3rd quarter valued at $116,000. Finally, Wealth Watch Advisors INC bought a new position in Cisco Systems in the 3rd quarter worth $126,000. 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.