Brokers Set Expectations for Cisco Systems FY2025 Earnings

Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) - Analysts at Zacks Research dropped their FY2025 EPS estimates for Cisco Systems in a report issued on Wednesday, June 4th. Zacks Research analyst R. Department now forecasts that the network equipment provider will post earnings per share of $3.07 for the year, down from their prior estimate of $3.14. The consensus estimate for Cisco Systems' current full-year earnings is $3.04 per share. Zacks Research also issued estimates for Cisco Systems' Q4 2025 earnings at $0.82 EPS, Q1 2026 earnings at $0.78 EPS, Q2 2026 earnings at $0.78 EPS, Q3 2026 earnings at $0.79 EPS, Q4 2026 earnings at $0.86 EPS, FY2026 earnings at $3.21 EPS, Q1 2027 earnings at $0.83 EPS, Q2 2027 earnings at $0.84 EPS, Q3 2027 earnings at $0.85 EPS and FY2027 earnings at $3.43 EPS.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings results on Wednesday, May 14th. The network equipment provider reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.92 by $0.04. Cisco Systems had a return on equity of 26.08% and a net margin of 16.96%. The business had revenue of $14.15 billion during the quarter, compared to the consensus estimate of $14.05 billion. During the same quarter last year, the company earned $0.88 earnings per share. The company's quarterly revenue was up 11.4% on a year-over-year basis.

A number of other equities research analysts have also recently commented on the company. Rosenblatt Securities raised their target price on Cisco Systems from $63.00 to $74.00 and gave the company a "buy" rating in a research report on Thursday, May 15th. Evercore ISI raised their price objective on Cisco Systems from $67.00 to $72.00 and gave the company an "outperform" rating in a report on Thursday, May 15th. Barclays restated an "equal weight" rating on shares of Cisco Systems in a research report on Wednesday, May 21st. Citigroup increased their target price on Cisco Systems from $68.00 to $71.00 and gave the company a "buy" rating in a research report on Thursday, May 15th. Finally, Piper Sandler boosted their price target on shares of Cisco Systems from $60.00 to $64.00 and gave the stock a "neutral" rating in a report on Thursday, May 15th. Eight analysts have rated the stock with a hold rating, twelve have assigned a buy rating and three have issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $68.00.

Cisco Systems Stock Up 2.2%

Shares of CSCO stock opened at $66.06 on Monday. Cisco Systems has a twelve month low of $44.50 and a twelve month high of $66.50. The stock has a market cap of $261.60 billion, a P/E ratio of 28.85, a P/E/G ratio of 4.16 and a beta of 0.88. The stock has a 50 day moving average of $59.61 and a 200 day moving average of $60.38. The company has a current ratio of 0.87, a quick ratio of 0.79 and a debt-to-equity ratio of 0.43.

Hedge Funds Weigh In On Cisco Systems

Institutional investors have recently bought and sold shares of the company. Norges Bank purchased a new stake in Cisco Systems during the 4th quarter worth approximately $3,297,905,000. FMR LLC increased its position in shares of Cisco Systems by 20.8% during the fourth quarter. FMR LLC now owns 77,216,513 shares of the network equipment provider's stock worth $4,571,218,000 after acquiring an additional 13,285,052 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Cisco Systems by 37.4% in the first quarter. Goldman Sachs Group Inc. now owns 46,973,293 shares of the network equipment provider's stock valued at $2,898,722,000 after acquiring an additional 12,775,066 shares in the last quarter. Nuveen LLC acquired a new stake in shares of Cisco Systems in the first quarter valued at $750,495,000. Finally, Raymond James Financial Inc. purchased a new position in Cisco Systems in the fourth quarter valued at $560,722,000. 73.33% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, EVP Thimaya K. Subaiya sold 2,065 shares of Cisco Systems stock in a transaction that occurred on Wednesday, March 12th. The shares were sold at an average price of $60.70, for a total value of $125,345.50. Following the completion of the sale, the executive vice president now owns 191,184 shares in the company, valued at approximately $11,604,868.80. This trade represents a 1.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Oliver Tuszik sold 15,000 shares of the company's stock in a transaction on Wednesday, May 28th. The stock was sold at an average price of $63.53, for a total value of $952,950.00. Following the transaction, the executive vice president now owns 131,676 shares in the company, valued at $8,365,376.28. This trade represents a 10.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 71,400 shares of company stock valued at $4,564,439. Company insiders own 0.01% of the company's stock.

Cisco Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 23rd. Shareholders of record on Thursday, July 3rd will be given a dividend of $0.41 per share. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.48%. The ex-dividend date of this dividend is Thursday, July 3rd. Cisco Systems's dividend payout ratio is presently 66.94%.

Cisco Systems announced that its board has initiated a share repurchase plan on Wednesday, February 12th that authorizes the company to repurchase $15.00 billion in outstanding shares. This repurchase authorization authorizes the network equipment provider to buy up to 6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.

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