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

Cisco Systems (NASDAQ:CSCO) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 5.050-5.110 for the period, compared to the consensus EPS estimate of 4.640. The company issued revenue guidance of $72.2 billion-$73.4 billion, compared to the consensus revenue estimate of $68.6 billion. Cisco Systems also updated its Q1 2027 guidance to 1.320-1.340 EPS.

Analyst Upgrades and Downgrades

CSCO has been the subject of several analyst reports. Weiss Ratings upgraded shares of Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, May 29th. New Street Research upped their price target on shares of Cisco Systems from $82.00 to $122.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Argus increased their price objective on shares of Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research report on Tuesday, May 19th. UBS Group raised their price objective on shares of Cisco Systems from $95.00 to $132.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Finally, Piper Sandler boosted their target price on Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a research report on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, Cisco Systems presently has a consensus rating of “Moderate Buy” and an average target price of $123.14.

Cisco Systems Trading Up 2.9%

Shares of NASDAQ:CSCO traded up $3.45 on Wednesday, hitting $123.88. 34,146,419 shares of the company’s stock were exchanged, compared to its average volume of 23,492,877. The stock 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 12 month low of $65.75 and a 12 month high of $130.37. 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 business’s 50 day simple moving average is $117.61 and its two-hundred day simple moving average is $98.38.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. The firm had revenue of $17.25 billion for 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 has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. Analysts anticipate that Cisco Systems will post 3.54 EPS for the current fiscal year.

Insiders Place Their Bets

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,169 shares of the company’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $117.28, for a total value of $840,780.32. Following the transaction, the insider directly owned 246,737 shares in the company, valued at $28,937,315.36. This represents a 2.82% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of Cisco Systems stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $114.61, for a total transaction of $316,438.21. Following the sale, the executive vice president directly owned 180,877 shares of the company’s stock, valued at $20,730,312.97. This represents a 1.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 47,650 shares of company stock worth $5,668,823. 0.01% of the stock is owned by company insiders.

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.

Hedge Funds Weigh In On Cisco Systems

Hedge funds and other institutional investors have recently made changes to their positions in the company. Price T Rowe Associates Inc. MD raised its position in shares of Cisco Systems by 103.2% in the 4th 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 last quarter. Victory Capital Management Inc. grew its position in Cisco Systems by 15.7% during the 4th quarter. Victory Capital Management Inc. now owns 21,102,912 shares of the network equipment provider’s stock worth $1,625,558,000 after purchasing an additional 2,867,520 shares during the last quarter. Credit Agricole S A purchased a new stake in Cisco Systems during the 3rd quarter worth approximately $138,802,000. Northern Trust Corp increased its stake in 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 raised its holdings in shares of Cisco Systems by 301.6% in the fourth quarter. NewEdge Advisors LLC now owns 2,081,451 shares of the network equipment provider’s stock worth $160,334,000 after buying an additional 1,563,117 shares during the last quarter. Institutional investors own 73.33% of the company’s stock.

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.