Cisco Systems (NASDAQ:CSCO) Releases Q1 2027 Earnings Guidance

Key Points

• Cisco raised its Q1 FY2027 outlook to EPS of $1.32–$1.34 and revenue of $18.0–$18.2 billion, well above analyst estimates of $1.11 EPS and $16.7 billion in revenue. Full-year FY2027 EPS guidance was set at $5.05–$5.11.
• Cisco’s latest quarterly results also exceeded expectations, with EPS of $1.22 versus $1.17 estimated and revenue of $17.25 billion versus $16.82 billion expected. Shares rose to $123.88, near the company’s 52-week high.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $123.14, while Cisco’s expanding AI infrastructure strategy supports growth prospects but its elevated valuation could increase the risk of a sell-the-news reaction.

Cisco Systems (NASDAQ:CSCO - Get Free Report) updated its first quarter 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 1.320-1.340 for the period, compared to the consensus estimate of 1.110. The company issued revenue guidance of $18.0 billion-$18.2 billion, compared to the consensus revenue estimate of $16.7 billion. Cisco Systems also updated its FY 2027 guidance to 5.050-5.110 EPS.

Cisco Systems Price Performance

Shares of CSCO traded up $3.45 during trading hours on Wednesday, reaching $123.88. The company had a trading volume of 33,459,840 shares, compared to its average volume of 23,492,877. The firm has a 50 day simple moving average of $117.61 and a 200-day simple moving average of $98.38. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The company has a market capitalization of $488.26 billion, a price-to-earnings ratio of 40.22, a PEG ratio of 2.76 and a beta of 1.02. Cisco Systems has a 12-month low of $65.75 and a 12-month high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating the consensus estimate of $1.17 by $0.05. 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 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 expect that Cisco Systems will post 3.54 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages have recently commented on CSCO. Wall Street Zen lowered Cisco Systems from a "buy" rating to a "hold" rating in a research note on Tuesday, July 28th. Argus lifted their price objective on Cisco Systems from $100.00 to $150.00 and gave the stock a "buy" rating in a report on Tuesday, May 19th. UBS Group boosted their target price on Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. CICC Research raised their price target on Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research report on Monday, May 18th. Finally, The Goldman Sachs Group boosted their price objective on shares of Cisco Systems from $116.00 to $125.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $123.14.

Insider Buying and Selling

In other news, insider Jeetendra I. Patel sold 7,169 shares of Cisco Systems stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $117.28, for a total transaction of $840,780.32. Following the completion of the sale, the insider directly owned 246,737 shares in the company, valued at $28,937,315.36. The trade was a 2.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,586 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.31, for a total transaction of $772,603.66. Following the sale, the executive vice president owned 177,223 shares in the company, valued at approximately $20,790,030.13. This trade represents a 3.58% decrease in their position. 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. Insiders sold 47,650 shares of company stock worth $5,668,823 in the last 90 days. 0.01% of the stock is currently owned by corporate insiders.

Key Stories Impacting Cisco Systems

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.

Institutional Investors Weigh In On Cisco Systems

Hedge funds have recently modified their holdings of the stock. Brighton Jones LLC boosted its stake in 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 acquiring an additional 24,562 shares during the period. Revolve Wealth Partners LLC raised its position in shares of Cisco Systems by 37.0% during 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. Sivia Capital Partners LLC lifted its holdings in shares of Cisco Systems by 7.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider's stock worth $706,000 after purchasing an additional 712 shares during the last quarter. Schnieders Capital Management LLC. lifted its holdings in shares of Cisco Systems by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider's stock worth $969,000 after purchasing an additional 519 shares during the last quarter. Finally, Kemnay Advisory Services Inc. acquired a new position in Cisco Systems during the 4th quarter valued at approximately $110,000. 73.33% of the stock is owned by institutional investors and hedge funds.

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.

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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