Cisco Systems (NASDAQ:CSCO) Releases Earnings Results, Beats Estimates By $0.03 EPS

Cisco Systems (NASDAQ:CSCO) posted its quarterly earnings results on Wednesday. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.03, FiscalAI reports. The company had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.70%. The company’s revenue for the quarter was up 12.0% on a year-over-year basis. During the same period last year, the firm posted $0.96 EPS. Cisco Systems updated its Q4 2026 guidance to 1.160-1.180 EPS and its FY 2026 guidance to 4.270-4.290 EPS.

Here are the key takeaways from Cisco Systems’ conference call:

• Cisco delivered a record Q3 with revenue of $15.8 billion, up 12% year over year, and non-GAAP EPS of $1.06, up 10%, both above the high end of guidance. Management said the company is on track for its strongest year ever.
• AI infrastructure demand accelerated sharply, with hyperscaler AI orders totaling $1.9 billion in Q3 and year-to-date orders reaching $5.3 billion, already above prior full-year expectations. Cisco now expects about $9 billion of hyperscaler AI infrastructure orders in FY2026 and roughly $4 billion of related revenue.
• Broad-based order growth remained very strong, with total product orders up 35% year over year and ex-hyperscaler orders up 19%. Enterprise, public sector, service provider/cloud, and telco customers all showed healthy demand, especially across networking.
• Margins were pressured by product mix and memory costs, as non-GAAP gross margin fell to 66% from 68.6% a year ago. Management said pricing actions, memory-reduction programs, and supply-chain controls are helping stabilize margins, but gross margin remains under some pressure.
• Cisco announced a restructuring to reallocate resources toward silicon, optics, security, and AI, with up to $1 billion of pre-tax charges expected over FY2026-FY2027. The company said the move is aimed at shifting investment to faster-growing areas rather than driving near-term savings.

Cisco Systems Stock Performance

Cisco Systems stock traded up $1.93 on Friday, hitting $117.46. The company’s stock had a trading volume of 22,109,487 shares, compared to its average volume of 23,130,592. The firm has a market cap of $463.95 billion, a P/E ratio of 38.23, a price-to-earnings-growth ratio of 3.82 and a beta of 0.92. The company has a quick ratio of 0.85, a current ratio of 0.96 and a debt-to-equity ratio of 0.45. The company has a fifty day moving average price of $84.66 and a 200-day moving average price of $79.68. Cisco Systems has a one year low of $62.30 and a one year high of $119.36.

Cisco Systems Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be issued a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems’s payout ratio is 54.55%.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Cisco reported better-than-expected fiscal Q3 results, with revenue of $15.84 billion and non-GAAP EPS of $1.06, while also lifting FY26 and Q4 guidance above Wall Street estimates.
• Positive Sentiment: Management said AI-related networking demand is accelerating, including roughly $9 billion in hyperscaler AI infrastructure orders for FY26, helping reposition Cisco as an AI infrastructure play.
• Positive Sentiment: Multiple brokerages turned more constructive after the report, including HSBC upgrading Cisco to Buy and several firms raising price targets, with targets now reaching as high as $150.
• Positive Sentiment: Options activity and market commentary suggest traders expect continued volatility and upside interest following the earnings-driven breakout.
• Neutral Sentiment: Cisco also announced plans to cut about 4,000 jobs as part of a restructuring to redirect spending toward AI, which investors appear to view as a cost-saving, strategic shift rather than an immediate headwind.

Insider Activity

In other news, EVP Thimaya K. Subaiya sold 1,744 shares of the company’s stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $77.07, for a total value of $134,410.08. Following the sale, the executive vice president owned 156,693 shares of the company’s stock, valued at approximately $12,076,329.51. This represents a 1.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Deborah L. Stahlkopf sold 7,981 shares of the company’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total transaction of $634,489.50. Following the completion of the sale, the executive vice president directly owned 187,097 shares in the company, valued at approximately $14,874,211.50. The trade was a 4.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 15,587 shares of company stock worth $1,230,765 in the last quarter. 0.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cisco Systems

Several large investors have recently made changes to their positions in CSCO. Intesa Sanpaolo Wealth Management bought a new stake in shares of Cisco Systems in the 4th quarter worth about $25,000. Jessup Wealth Management Inc bought a new stake in shares of Cisco Systems in the 4th quarter worth about $29,000. Swiss RE Ltd. bought a new stake in shares of Cisco Systems in the 4th quarter worth about $35,000. Quattro Advisors LLC bought a new stake in shares of Cisco Systems in the 4th quarter worth about $49,000. Finally, Birchwood Financial Partners Inc. acquired a new position in Cisco Systems during the 4th quarter worth about $49,000. Institutional investors own 73.33% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on CSCO. JPMorgan Chase & Co. lifted their price objective on shares of Cisco Systems from $95.00 to $96.00 in a research note on Monday. Evercore boosted their price objective on shares of Cisco Systems from $110.00 to $150.00 and gave the stock an “outperform” rating in a research note on Thursday. BNP Paribas Exane boosted their price objective on shares of Cisco Systems from $87.00 to $132.00 and gave the stock an “outperform” rating in a research note on Thursday. KeyCorp boosted their target price on shares of Cisco Systems from $87.00 to $125.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $100.00 target price on shares of Cisco Systems in a research report on Thursday, February 12th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, Cisco Systems presently has an average rating of “Moderate Buy” and a consensus price target of $114.55.

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.