Cisco Systems (NASDAQ:CSCO) Stock Price Up 2.9% on Earnings Beat

Cisco Systems, Inc. (NASDAQ:CSCO)’s share price was 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 daily volume of 23,437,350 shares. The stock had previously closed at $120.43.

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 28.44% and a net margin of 20.14%.The business had revenue of $17.25 billion during the quarter, compared to analysts’ expectations 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.

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.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. UBS Group boosted their target price on Cisco Systems from $95.00 to $132.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. JPMorgan Chase & Co. lifted their price target on Cisco Systems from $95.00 to $96.00 in a research note on Monday, May 11th. KeyCorp upped their price objective on Cisco Systems from $125.00 to $130.00 and gave the stock an “overweight” rating in a report on Thursday, June 25th. Evercore increased their price objective on Cisco Systems from $110.00 to $150.00 and gave the stock an “outperform” rating in a research report on Thursday, May 14th. Finally, The Goldman Sachs Group raised their target price on Cisco Systems from $116.00 to $125.00 and gave the company a “neutral” rating in a report on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $123.14.

Insiders Place Their Bets

In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 6,586 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $117.31, for a total transaction of $772,603.66. Following the completion of the transaction, the executive vice president owned 177,223 shares of the company’s stock, valued at approximately $20,790,030.13. This trade represents a 3.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $114.61, for a total value of $316,438.21. Following the sale, the executive vice president directly owned 180,877 shares in the company, valued at approximately $20,730,312.97. The trade was a 1.50% 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. Over the last quarter, insiders have sold 47,650 shares of company stock valued at $5,668,823. Company insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

Hedge funds have recently modified their holdings of the company. World Investment Advisors increased its stake in shares of Cisco Systems by 15.4% in the 4th quarter. World Investment Advisors now owns 198,549 shares of the network equipment provider’s stock valued at $13,905,000 after acquiring an additional 26,455 shares during the last quarter. WCG Wealth Advisors LLC boosted its stake in Cisco Systems by 101.8% during the 4th quarter. WCG Wealth Advisors LLC now owns 107,306 shares of the network equipment provider’s stock worth $8,266,000 after acquiring an additional 54,141 shares during the last quarter. Vise Technologies Inc. boosted its stake in Cisco Systems by 47.1% during the 4th quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider’s stock worth $15,432,000 after acquiring an additional 64,144 shares during the last quarter. Western Wealth Management LLC grew its holdings in Cisco Systems by 60.5% during the first quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider’s stock valued at $5,926,000 after purchasing an additional 28,792 shares during the period. Finally, Truist Financial Corp grew its holdings in Cisco Systems by 6.8% during the fourth quarter. Truist Financial Corp now owns 4,311,098 shares of the network equipment provider’s stock valued at $332,084,000 after purchasing an additional 275,456 shares during the period. 73.33% of the stock is owned by institutional investors and hedge funds.

Cisco Systems Price Performance

The company’s 50 day simple moving average is $117.61 and its 200 day simple moving average is $98.38. 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 stock has a market cap of $488.26 billion, a P/E ratio of 40.22, a P/E/G ratio of 2.76 and a beta of 1.02.

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.