Cisco Systems (NASDAQ:CSCO) Issues FY 2027 Earnings Guidance

Key Points

• Cisco issued FY 2027 guidance well above consensus, projecting EPS of $5.05–$5.11 versus the $4.64 estimate and revenue of $72.2–$73.4 billion versus $68.6 billion. Q1 FY 2027 EPS guidance was set at $1.32–$1.34.
• Cisco shares rose 2.9% to $123.88 following the update, nearing their 52-week high. The company had also exceeded quarterly expectations, reporting $1.22 EPS and $17.25 billion in revenue.
• Analysts maintain a Moderate Buy consensus, with 17 of 24 analysts rating the stock Strong Buy or Buy and an average price target of $123.14; several firms recently raised their targets, including Bank of America to $150.

Cisco Systems (NASDAQ:CSCO - Get Free Report) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 5.050-5.110 for the period, compared to the consensus EPS estimate of 4.640. The company issued revenue guidance of $72.2 billion-$73.4 billion, compared to the consensus revenue estimate of $68.6 billion. Cisco Systems also updated its Q1 2027 guidance to 1.320-1.340 EPS.

Cisco Systems Stock Up 2.9%

Shares of NASDAQ:CSCO traded up $3.45 during trading on Wednesday, reaching $123.88. 31,447,182 shares of the stock were exchanged, compared to its average volume of 23,437,350. Cisco Systems has a 1-year low of $65.75 and a 1-year high of $130.37. The stock has a fifty day moving average of $117.61 and a two-hundred day moving average of $98.38. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. The firm has a market cap of $488.26 billion, a price-to-earnings ratio of 40.22, a price-to-earnings-growth ratio of 2.76 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.82 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. Research analysts anticipate that Cisco Systems will post 3.54 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have recently commented on CSCO. Bank of America boosted their target price on shares of Cisco Systems from $135.00 to $150.00 and gave the stock a "buy" rating in a research report on Monday, June 8th. UBS Group raised their price target on shares of Cisco Systems from $95.00 to $132.00 and gave the company a "buy" rating in a research report on Thursday, May 14th. KeyCorp lifted their price target on Cisco Systems from $125.00 to $130.00 and gave the company an "overweight" rating in a research note on Thursday, June 25th. BNP Paribas Exane boosted their price objective on Cisco Systems from $87.00 to $132.00 and gave the stock an "outperform" rating in a report on Thursday, May 14th. Finally, The Goldman Sachs Group increased their price objective on Cisco Systems from $116.00 to $125.00 and gave the stock a "neutral" rating in a research note on Wednesday, June 3rd. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $123.14.

Insider Activity

In related news, EVP Oliver Tuszik sold 2,761 shares of the 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 completion of the sale, the executive vice president directly owned 180,877 shares of the company's stock, valued at approximately $20,730,312.97. This trade represents a 1.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of Cisco Systems stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the sale, the chief executive officer owned 637,085 shares in the company, valued at $76,469,312.55. This trade represents a 3.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 47,650 shares of company stock worth $5,668,823. Corporate insiders own 0.01% of the company's stock.

Cisco Systems News Roundup

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

• Positive Sentiment: Cisco has raised its full-year outlook for AI infrastructure orders and is expanding its AI strategy through conference presentations, infrastructure investments and company-wide model routing. The developments support the view that AI networking is becoming a larger growth driver. Does Cisco’s Expanded AI Infrastructure Orders and Employee Agents Change The Bull Case For Cisco Systems
• Positive Sentiment: The rollout of personalized AI agents to approximately 90,000 employees, combined with specific AI-related revenue targets, signals that Cisco is attempting to convert internal AI adoption into measurable efficiency gains and new revenue streams. Cisco Puts 90,000 Workers On Personalized AI Agents With New Revenue Targets
• Positive Sentiment: Investors are expecting continued strong results after Cisco’s prior quarterly revenue and adjusted EPS exceeded consensus estimates, with analysts looking for roughly mid-to-high-teen growth in the upcoming quarter. How Much Traders Expect Cisco Stock to Move After Earnings
• Neutral Sentiment: Options markets imply an unusually large post-earnings move of approximately 8%, highlighting significant event risk as investors await management’s guidance on AI orders, networking demand and margins. Cisco Options Chain Braces for an 8% Earnings Swing
• Neutral Sentiment: In-line July CPI data helped support broader U.S. equity futures and reduced concern about an inflation-driven shift in interest-rate expectations, providing a favorable market backdrop for CSCO.
• Negative Sentiment: With Cisco trading near its 52-week high and at a relatively elevated earnings multiple, strong AI orders and guidance may already be reflected in the valuation, increasing the risk of a sell-the-news reaction if results or forecasts disappoint.

Hedge Funds Weigh In On Cisco Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. First Commonwealth Financial Corp PA boosted its holdings in Cisco Systems by 0.9% during the 4th quarter. First Commonwealth Financial Corp PA now owns 13,656 shares of the network equipment provider's stock valued at $1,052,000 after acquiring an additional 128 shares during the period. Wealthedge Investment Advisors LLC increased its stake in Cisco Systems by 4.1% in the 4th quarter. Wealthedge Investment Advisors LLC now owns 3,432 shares of the network equipment provider's stock worth $264,000 after purchasing an additional 136 shares during the period. Silicon Valley Capital Partners lifted its position in Cisco Systems by 3.0% in the third quarter. Silicon Valley Capital Partners now owns 5,154 shares of the network equipment provider's stock valued at $353,000 after purchasing an additional 148 shares during the last quarter. Cutler Investment Counsel LLC boosted its stake in shares of Cisco Systems by 2.4% during the fourth quarter. Cutler Investment Counsel LLC now owns 6,274 shares of the network equipment provider's stock valued at $483,000 after purchasing an additional 148 shares during the period. Finally, Keebeck Wealth Management boosted its stake in shares of Cisco Systems by 1.9% during the third quarter. Keebeck Wealth Management now owns 8,054 shares of the network equipment provider's stock valued at $551,000 after purchasing an additional 153 shares during the period. 73.33% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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