Cisco Systems (NASDAQ:CSCO) Posts Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Cisco Systems reported a quarterly EPS of $0.99, exceeding analysts' expectations of $0.98, with revenue also beating predictions at $14.67 billion.
• The company announced a quarterly dividend of $0.41 per share, with a dividend yield of 2.5%, set to be paid on October 22nd.
• Following insider sales, CEO Charles Robbins and CFO Richard Scott Herren reduced their holdings by 4.15% and 4.82%, respectively, raising questions about executive confidence.

Cisco Systems (NASDAQ:CSCO - Get Free Report) announced its quarterly earnings data on Wednesday. The network equipment provider reported $0.99 EPS for the quarter, topping analysts' consensus estimates of $0.98 by $0.01, RTT News reports. The business had revenue of $14.67 billion during the quarter, compared to analysts' expectations of $14.63 billion. Cisco Systems had a return on equity of 27.02% and a net margin of 18.45%. The firm's quarterly revenue was up 7.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.87 earnings per share. Cisco Systems updated its Q1 2026 guidance to 0.970-0.990 EPS and its FY 2026 guidance to 4.000-4.060 EPS.

Cisco Systems Price Performance

Shares of NASDAQ CSCO traded down $3.10 during mid-day trading on Friday, hitting $66.20. 40,854,477 shares of the stock traded hands, compared to its average volume of 20,656,640. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.01 and a quick ratio of 0.87. Cisco Systems has a twelve month low of $47.85 and a twelve month high of $72.55. The company has a market cap of $262.15 billion, a PE ratio of 25.27, a price-to-earnings-growth ratio of 3.84 and a beta of 0.91. The firm has a 50 day simple moving average of $67.98 and a two-hundred day simple moving average of $63.33.

Cisco Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Investors of record on Friday, October 3rd will be issued a dividend of $0.41 per share. The ex-dividend date of this dividend is Friday, October 3rd. This represents a $1.64 annualized dividend and a dividend yield of 2.5%. Cisco Systems's dividend payout ratio (DPR) is 66.94%.

Insider Buying and Selling at Cisco Systems

In other news, CEO Charles Robbins sold 29,784 shares of Cisco Systems stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $64.61, for a total value of $1,924,344.24. Following the completion of the transaction, the chief executive officer directly owned 688,409 shares of the company's stock, valued at approximately $44,478,105.49. This trade represents a 4.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Richard Scott Herren sold 15,678 shares of Cisco Systems stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $65.52, for a total value of $1,027,222.56. Following the completion of the transaction, the chief financial officer directly owned 309,543 shares of the company's stock, valued at approximately $20,281,257.36. This trade represents a 4.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 77,731 shares of company stock worth $5,021,519 over the last 90 days. Company insiders own 0.01% of the company's stock.

Institutional Trading of Cisco Systems

Several large investors have recently made changes to their positions in CSCO. Brighton Jones LLC grew its stake in shares of Cisco Systems by 49.5% in the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider's stock valued at $4,392,000 after buying an additional 24,562 shares during the period. Revolve Wealth Partners LLC raised its holdings in shares of Cisco Systems by 37.0% in the 4th quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider's stock worth $542,000 after purchasing an additional 2,474 shares during the period. Marshall Wace LLP raised its holdings in shares of Cisco Systems by 118.1% in the 2nd quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider's stock worth $6,289,000 after purchasing an additional 590,650 shares during the period. Gamco Investors INC. ET AL raised its holdings in Cisco Systems by 7.3% during the 2nd quarter. Gamco Investors INC. ET AL now owns 17,035 shares of the network equipment provider's stock valued at $1,182,000 after acquiring an additional 1,164 shares during the period. Finally, Main Street Financial Solutions LLC raised its holdings in Cisco Systems by 38.4% during the 2nd quarter. Main Street Financial Solutions LLC now owns 29,581 shares of the network equipment provider's stock valued at $2,052,000 after acquiring an additional 8,209 shares during the period. 73.33% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

CSCO has been the topic of several recent analyst reports. Wall Street Zen lowered Cisco Systems from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 12th. UBS Group upped their target price on Cisco Systems from $70.00 to $74.00 and gave the stock a "neutral" rating in a report on Tuesday, August 5th. Wells Fargo & Company upped their target price on Cisco Systems from $75.00 to $83.00 and gave the stock an "overweight" rating in a report on Thursday. KeyCorp started coverage on Cisco Systems in a research report on Thursday, June 26th. They set an "overweight" rating and a $77.00 price target on the stock. Finally, Bank of America upped their target price on Cisco Systems from $76.00 to $85.00 and gave the company a "buy" rating in a research report on Thursday. Nine research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, Cisco Systems presently has an average rating of "Moderate Buy" and a consensus target price of $73.45.

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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