Cisco Systems (NASDAQ:CSCO) Posts Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Cisco Systems (NASDAQ:CSCO) posted its quarterly earnings data on Wednesday. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05, FiscalAI reports. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The firm had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.82 billion. Cisco Systems updated its FY 2027 guidance to 5.050-5.110 EPS and its Q1 2027 guidance to 1.320-1.340 EPS.

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

• Record fiscal 2026 results: Cisco reported Q4 revenue of $17.3 billion, up 18% year over year, with non-GAAP EPS up 23% to $1.22. Full-year revenue reached a record $63.3 billion, while EPS rose 14% to $4.33.
• AI and networking demand accelerated: Q4 product orders increased 35%, including triple-digit hyperscaler AI infrastructure orders and 40% growth in networking orders. Cisco expects hyperscale AI infrastructure revenue to reach $7.5 billion in fiscal 2027, supporting a 15% midpoint revenue-growth outlook.
• Demand was broad-based beyond hyperscalers, with enterprise orders up 21%, public-sector orders up 30%, and service-provider and cloud orders up 95%. Cisco also cited growing demand for campus networking, data-center infrastructure, security, and on-premise AI deployments.
• Gross-margin pressure is expected to persist as the company ships a higher mix of hardware and absorbs elevated memory costs. Q4 non-GAAP gross margin declined 210 basis points year over year to 66.3%, and fiscal 2027 guidance implies a slight gross-margin headwind despite operating-margin improvement.
• Cisco generated $5.4 billion in Q4 operating cash flow and returned $3.2 billion to shareholders through dividends and repurchases. Fiscal 2027 revenue guidance is $72.2 billion to $73.4 billion, with non-GAAP EPS of $5.05 to $5.11.

Cisco Systems Stock Up 2.9%

NASDAQ CSCO traded up $3.45 during trading hours on Wednesday, hitting $123.88. 35,566,187 shares of the company were exchanged, compared to its average volume of 23,523,975. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The firm has a market cap of $488.26 billion, a price-to-earnings ratio of 40.22, a PEG ratio of 2.76 and a beta of 1.02. The company has a 50 day moving average of $117.61 and a two-hundred day moving average of $98.38. Cisco Systems has a 52-week low of $65.75 and a 52-week high of $130.37.

Insiders Place Their Bets

In other news, EVP Deborah L. Stahlkopf sold 6,586 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $117.31, for a total transaction of $772,603.66. Following the completion of the transaction, the executive vice president directly owned 177,223 shares of the company’s stock, valued at approximately $20,790,030.13. The trade was a 3.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $114.61, for a total transaction of $316,438.21. Following the sale, the executive vice president owned 180,877 shares in the company, valued at $20,730,312.97. The trade was a 1.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 47,650 shares of company stock worth $5,668,823. Corporate insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Price T Rowe Associates Inc. MD lifted its position in Cisco Systems by 103.2% in the fourth 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 period. Victory Capital Management Inc. increased 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 period. Credit Agricole S A purchased a new position in shares of Cisco Systems during the 3rd quarter worth approximately $138,802,000. Northern Trust Corp raised its stake in shares of 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 worth $3,318,275,000 after buying an additional 1,631,703 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in shares of Cisco Systems by 301.6% in the 4th quarter. NewEdge Advisors LLC now owns 2,081,451 shares of the network equipment provider’s stock valued at $160,334,000 after buying an additional 1,563,117 shares during the period. 73.33% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Citigroup upped their price target on Cisco Systems from $90.00 to $112.00 and gave the stock a “buy” rating in a research note on Thursday, May 14th. Wells Fargo & Company boosted their price objective on Cisco Systems from $95.00 to $130.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. CICC Research increased their target price on Cisco Systems from $96.00 to $125.00 and gave the stock an “outperform” rating in a research note on Monday, May 18th. Bank of America raised their target price on Cisco Systems from $135.00 to $150.00 and gave the company a “buy” rating in a report on Monday, June 8th. Finally, The Goldman Sachs Group boosted their price target on shares of Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research note on Wednesday, June 3rd. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $123.14.

More Cisco Systems News

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

• Positive Sentiment: Cisco delivered a double beat for fiscal Q4: revenue reached approximately $17.3 billion, up 18% year over year and above the $16.82 billion consensus estimate, while non-GAAP EPS of $1.22 exceeded expectations of $1.17. Cisco fiscal 2026 earnings release
• Positive Sentiment: Demand indicators were particularly strong: total product orders rose 35% year over year, networking orders increased 40%, and Cisco recorded its eighth consecutive quarter of double-digit networking-order growth.
• Positive Sentiment: AI infrastructure demand is accelerating. Hyperscaler orders totaled $4 billion in Q4 and $9.3 billion for fiscal 2026; Cisco expects AI infrastructure revenue to rise from roughly $4 billion in fiscal 2026 to $7.5 billion in fiscal 2027. Cisco Q4 double beat and networking supercycle
• Positive Sentiment: Management issued fiscal 2027 revenue guidance of $72.2 billion to $73.4 billion and non-GAAP EPS guidance of $5.05 to $5.11, both well above consensus estimates of $68.6 billion and $4.64, respectively. First-quarter guidance also exceeded expectations, with revenue of $18.0 billion to $18.2 billion and non-GAAP EPS of $1.32 to $1.34. Cisco upbeat annual revenue forecast
• Neutral Sentiment: The earnings report reinforces Cisco’s “networking supercycle” and AI growth narrative, but the stock is trading near its 52-week high and at a relatively rich valuation, leaving less room for further upside if execution slows.
• Negative Sentiment: Despite the strong headline figures and guidance, reports indicated that shares declined after hours because Wall Street’s expectations were exceptionally high and investors may have wanted an even stronger outlook or additional detail on AI-related growth. Cisco stock reaction to earnings

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.