Cisco Systems (NASDAQ:CSCO) Updates Q3 2026 Earnings Guidance

Cisco Systems (NASDAQ:CSCO) issued an update on its third quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.020-1.040 for the period, compared to the consensus EPS estimate of 0.950. The company issued revenue guidance of $15.4 billion-$15.6 billion, compared to the consensus revenue estimate of $15.2 billion. Cisco Systems also updated its FY 2026 guidance to 4.130-4.170 EPS.

Analysts Set New Price Targets

CSCO has been the subject of a number of research analyst reports. Morgan Stanley lifted their price target on shares of Cisco Systems from $82.00 to $91.00 and gave the stock an “overweight” rating in a research note on Wednesday, December 17th. Erste Group Bank raised Cisco Systems from a “hold” rating to a “buy” rating in a report on Monday, November 10th. President Capital reduced their target price on shares of Cisco Systems from $90.00 to $88.00 in a research note on Wednesday, December 24th. Zacks Research raised Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. Finally, BNP Paribas Exane raised their target price on shares of Cisco Systems from $86.00 to $87.00 and gave the company an “outperform” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, Cisco Systems presently has an average rating of “Moderate Buy” and a consensus target price of $94.73.

Cisco Systems Stock Down 9.7%

NASDAQ CSCO traded down $8.30 during trading hours on Thursday, hitting $77.24. 14,279,575 shares of the company traded hands, compared to its average volume of 21,780,475. Cisco Systems has a twelve month low of $52.11 and a twelve month high of $88.18. The business’s 50-day moving average is $77.91 and its 200-day moving average is $72.99. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.83 and a current ratio of 0.93. The stock has a market capitalization of $305.18 billion, a price-to-earnings ratio of 29.04, a P/E/G ratio of 3.26 and a beta of 0.87.

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

Cisco Systems Increases Dividend

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

Insider Activity

In other news, Director Michael D. Capellas sold 10,850 shares of Cisco Systems stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $77.13, for a total transaction of $836,860.50. Following the sale, the director owned 146,368 shares in the company, valued at $11,289,363.84. This trade represents a 6.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Maria Victoria Wong sold 428 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $80.33, for a total value of $34,381.24. Following the completion of the sale, the senior vice president directly owned 32,176 shares of the company’s stock, valued at $2,584,698.08. The trade was a 1.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 1,044,865 shares of company stock worth $81,397,635. Company insiders own 0.01% of the company’s stock.

Cisco Systems News Roundup

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

Hedge Funds Weigh In On Cisco Systems

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