Cisco Systems (NASDAQ:CSCO) Releases Earnings Results, Beats Estimates By $0.02 EPS

Cisco Systems (NASDAQ:CSCO) issued its quarterly earnings results on Wednesday. The network equipment provider reported $1.06 EPS for the quarter, topping analysts’ consensus estimates of $1.04 by $0.02, FiscalAI reports. The business had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%. 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

NASDAQ:CSCO traded up $2.58 during trading hours on Wednesday, reaching $101.87. The stock had a trading volume of 43,126,254 shares, compared to its average volume of 22,598,432. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96. The stock has a 50 day simple moving average of $83.48 and a 200 day simple moving average of $79.14. Cisco Systems has a 12-month low of $60.85 and a 12-month high of $102.01. The stock has a market cap of $402.38 billion, a P/E ratio of 35.74, a price-to-earnings-growth ratio of 3.70 and a beta of 0.92.

Wall Street Analyst Weigh In

A number of analysts recently commented on CSCO shares. Zacks Research lowered Cisco Systems from a “strong-buy” rating to a “hold” rating in a report on Monday, April 13th. CICC Research lifted their price target on Cisco Systems from $84.00 to $96.00 and gave the stock an “outperform” rating in a report on Friday, February 13th. Citigroup lifted their price target on Cisco Systems from $85.00 to $90.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. BNP Paribas Exane lifted their price target on Cisco Systems from $86.00 to $87.00 and gave the stock an “outperform” rating in a report on Thursday, February 12th. Finally, HSBC lifted their price target on Cisco Systems from $74.00 to $77.00 and gave the stock a “hold” rating in a report on Friday, February 13th. Three analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $90.29.

Insiders Place Their Bets

In other Cisco Systems news, EVP Thimaya K. Subaiya sold 1,744 shares of the firm’s stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $77.07, for a total value of $134,410.08. Following the completion of the sale, the executive vice president directly owned 156,693 shares of the company’s stock, valued at $12,076,329.51. This trade represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Deborah L. Stahlkopf sold 7,981 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total value of $634,489.50. Following the completion of the sale, the executive vice president directly owned 187,097 shares of the company’s stock, valued at $14,874,211.50. This represents a 4.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 46,431 shares of company stock valued at $3,574,820. Company insiders own 0.01% of the company’s stock.

Institutional Trading of Cisco Systems

A number of large investors have recently bought and sold shares of the company. Brighton Jones LLC grew its position in shares of Cisco Systems by 49.5% in the fourth quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider’s stock valued at $4,392,000 after purchasing an additional 24,562 shares in the last quarter. Revolve Wealth Partners LLC grew its position in shares of Cisco Systems by 37.0% in the fourth quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider’s stock valued at $542,000 after purchasing an additional 2,474 shares in the last quarter. Sivia Capital Partners LLC grew its position in shares of Cisco Systems by 7.5% in the second quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider’s stock valued at $706,000 after purchasing an additional 712 shares in the last quarter. Schnieders Capital Management LLC. grew its position in shares of Cisco Systems by 3.9% in the second quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider’s stock valued at $969,000 after purchasing an additional 519 shares in the last quarter. Finally, Optimist Retirement Group LLC purchased a new position in shares of Cisco Systems in the second quarter valued at $202,000. 73.33% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Cisco delivered a “beat and raise” quarter, with revenue of $15.8 billion, above expectations, and non-GAAP EPS of $1.06, also ahead of consensus. CISCO REPORTS THIRD QUARTER EARNINGS
• Positive Sentiment: The company raised its outlook, guiding FY 2026 EPS to $4.27-$4.29 and revenue to $62.8 billion-$63.0 billion, both above analyst estimates. CISCO REPORTS THIRD QUARTER EARNINGS
• Positive Sentiment: Management said demand was broad-based and tied to accelerating AI infrastructure spending, which investors are viewing as a sign Cisco is benefiting from the AI build-out and improving enterprise networking trends. Cisco stock pops as Q3 earnings defy memory headwinds
• Neutral Sentiment: Cisco also announced a restructuring plan to shift spending toward AI growth, but the move comes with up to $1 billion in related costs, which may weigh on near-term margins even as it supports longer-term growth. Cisco to Cut Jobs in Shift to Capture More AI Demand

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.