Cisco Systems (NASDAQ:CSCO) Shares Down 1.7% - Here's What Happened

Key Points

• Cisco shares fell 1.7% to $120.43 on Tuesday, with trading volume 31% below the average daily level.
• Investors are focused on upcoming earnings, with analysts expecting approximately $16.85 billion in revenue and $1.17 in adjusted EPS. Networking demand, AI infrastructure spending and the Splunk integration are key growth drivers, while memory costs, competition and the expense of Splunk’s cloud transition remain risks.
• Wall Street maintains a generally positive view, with Cisco receiving a consensus “Moderate Buy” rating and an average price target of $123.14, although options activity suggests expectations for a relatively limited post-earnings move.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) shares fell 1.7% on Tuesday . The company traded as low as $120.12 and last traded at $120.43. Approximately 16,268,120 shares traded hands during trading, a decline of 31% from the average daily volume of 23,407,471 shares. The stock had previously closed at $122.57.

More Cisco Systems News

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

• Positive Sentiment: Analysts expect fourth-quarter revenue of approximately $16.85 billion and adjusted EPS of $1.17, implying mid-to-high-teen growth in both measures. Investors will be watching whether networking demand, AI infrastructure spending and the Splunk integration can support continued momentum. Cisco earnings preview: where options data suggest CSCO is headed
• Positive Sentiment: Cisco is rolling out personalized AI agents to its approximately 90,000 employees, investing in supporting infrastructure and setting AI-driven revenue targets. The initiative could improve productivity and create new revenue streams, reinforcing the company’s positioning in enterprise AI networking. Cisco puts 90,000 workers on personalized AI agents
• Neutral Sentiment: Options activity and recent technical commentary suggest investors expect Cisco to remain in a relatively tight trading range around earnings, despite analysts raising price targets. This points to uncertainty about the size of any post-earnings move rather than a clear directional signal. Cisco Systems is in a trading range ahead of earnings
• Negative Sentiment: Pre-earnings caution reflects risks including higher memory costs, competition, and the pace and expense of Splunk’s cloud transition. Any weaker-than-expected guidance or evidence that AI-related growth is already priced into CSCO could pressure the stock. Should Buy, Sell or Hold Cisco Stock Before Q4 Earnings?

Wall Street Analyst Weigh In

A number of brokerages have issued reports on CSCO. CICC Research raised their price objective on shares of Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research note on Monday, May 18th. The Goldman Sachs Group upped their target price on shares of Cisco Systems from $116.00 to $125.00 and gave the company a "neutral" rating in a research report on Wednesday, June 3rd. New Street Research increased their price target on Cisco Systems from $82.00 to $122.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. BNP Paribas Exane raised their price target on Cisco Systems from $87.00 to $132.00 and gave the stock an "outperform" rating in a research report on Thursday, May 14th. Finally, Citigroup lifted their price objective on Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, Cisco Systems has a consensus rating of "Moderate Buy" and a consensus price target of $123.14.

Cisco Systems Stock Down 1.7%

The firm has a market cap of $474.79 billion, a P/E ratio of 39.11, a price-to-earnings-growth ratio of 2.74 and a beta of 1.02. The firm's 50 day moving average is $117.77 and its two-hundred day moving average is $98.05. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating the consensus estimate of $1.03 by $0.03. The firm had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business's quarterly revenue was up 12.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.96 earnings per share. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. As a group, research analysts anticipate that Cisco Systems, Inc. will post 3.54 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th were given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Monday, July 6th. Cisco Systems's payout ratio is currently 54.55%.

Insider Buying and Selling

In related news, insider Jeetendra I. Patel sold 7,169 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.28, for a total transaction of $840,780.32. Following the completion of the transaction, the insider directly owned 246,737 shares of the company's stock, valued at approximately $28,937,315.36. This represents a 2.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the firm's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the transaction, the executive vice president directly owned 140,857 shares of the company's stock, valued at $16,890,162.87. This represents a 4.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 47,650 shares of company stock worth $5,668,823 over the last three months. Company insiders own 0.01% of the company's stock.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors have recently made changes to their positions in the company. MidAtlantic Capital Management Inc. acquired a new position in Cisco Systems in the 4th quarter valued at $25,000. Intesa Sanpaolo Wealth Management bought a new position in shares of Cisco Systems in the 4th quarter valued at $25,000. Networth Advisors LLC boosted its stake in shares of Cisco Systems by 276.4% during the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after purchasing an additional 246 shares in the last quarter. Financial Life Planners bought a new stake in Cisco Systems during the 1st quarter worth approximately $27,000. Finally, Manning & Napier Advisors LLC grew its stake in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after purchasing an additional 200 shares during the last quarter. Institutional investors own 73.33% of the company's stock.

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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