Cisco Systems (NASDAQ:CSCO) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Cisco Systems (NASDAQ:CSCO) issued its quarterly earnings results on Thursday. The network equipment provider reported $1.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07, FiscalAI reports. The company had revenue of $18.52 billion during the quarter, compared to the consensus estimate of $18.12 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. Cisco Systems updated its Q2 2027 guidance to 1.340-1.360 EPS and its FY 2027 guidance to 5.470-5.530 EPS.

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

• Cisco reported record Q1 revenue of $18.5 billion, up 24% year over year, and non-GAAP EPS of $1.40, up 40%. It raised FY2027 guidance to $74.8–$75.8 billion in revenue and $5.47–$5.53 in non-GAAP EPS.
• Product orders rose 21%, including 14% growth excluding hyperscalers, while networking orders increased 28%. Cisco projected AI hyperscale revenue of $9 billion for FY2027—more than double FY2026—and management described AI-driven networking demand as an early-stage, multi-year opportunity.
• Non-GAAP gross margin was 65.6%, down 250 basis points year over year, as hardware growth increased the product mix and higher memory costs weighed on margins. Cisco expects full-year gross margin just below 65%.
• Operating cash flow increased 36% to $4.4 billion, and Cisco returned $3.7 billion to shareholders through dividends and repurchases, equal to 95% of free cash flow.

Cisco Systems Trading Up 1.2%

CSCO stock traded up $1.25 during trading on Thursday, hitting $102.01. The company had a trading volume of 26,131,350 shares, compared to its average volume of 22,050,861. Cisco Systems has a 52-week low of $72.80 and a 52-week high of $130.37. The company has a 50 day simple moving average of $108.16 and a 200-day simple moving average of $102.00. The firm has a market capitalization of $402.18 billion, a P/E ratio of 30.54, a PEG ratio of 2.02 and a beta of 1.01. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. Wells Fargo & Company increased their target price on shares of Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Truist Financial lifted their price target on shares of Cisco Systems from $125.00 to $140.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Deutsche Bank initiated coverage on shares of Cisco Systems in a report on Tuesday, September 1st. They set a “buy” rating and a $135.00 price target on the stock. Weiss Ratings reissued a “buy (b)” rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Finally, Morgan Stanley lowered shares of Cisco Systems from an “overweight” rating to an “equal weight” rating and reduced their price objective for the stock from $135.00 to $120.00 in a research report on Thursday, November 5th. Three equities 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’s stock. Based on data from MarketBeat, Cisco Systems presently has an average rating of “Moderate Buy” and an average target price of $127.87.

Insider Buying and Selling

In other Cisco Systems news, EVP Deborah Stahlkopf sold 6,487 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.53, for a total value of $723,495.11. Following the transaction, the executive vice president directly owned 167,116 shares in the company, valued at $18,638,447.48. This represents a 3.74% 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 Thimaya Subaiya sold 312 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $34,376.16. Following the transaction, the executive vice president directly owned 127,661 shares in the company, valued at approximately $14,065,688.98. This trade represents a 0.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,869 shares of company stock worth $5,005,620 over the last 90 days. Corporate insiders own 0.01% of the company’s stock.

Key Cisco Systems News

These are some of the CSCO news items that stood out recently:

• Positive Sentiment: For fiscal Q1 2027, Cisco reported adjusted earnings of $1.40 per share, topping the $1.33 consensus, and revenue of $18.52 billion versus expectations of $18.12 billion. The company also cited strong AI demand and reported its fastest revenue and earnings growth in more than 15 years. Cisco stock jumps 5% on earnings and revenue beat
• Positive Sentiment: Management raised its fiscal 2027 adjusted EPS outlook to $5.47–$5.53, above the $5.10 analyst estimate, and forecast revenue of $74.8–$75.8 billion, ahead of the $73.2 billion consensus. Its Q2 EPS and revenue guidance also exceeded expectations, reinforcing confidence in continued momentum. Cisco raises annual revenue forecast on strong AI networking demand
• Neutral Sentiment: Investors will still assess whether AI-driven growth can be sustained and how margins and valuation hold up after the rally. These issues were flagged ahead of earnings, but the reported results and raised outlook were the immediate positive catalysts. Cisco stock price prediction: rally faces margin and valuation test

About Cisco Systems

Cisco Systems, Inc. develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks. The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.