Cisco Systems (NASDAQ:CSCO) Shares Gap Up After Strong Earnings

Key Points

• Cisco Systems gapped up after reporting stronger-than-expected quarterly results, with adjusted EPS of $1.06 topping estimates and revenue rising 12% year over year to $15.84 billion.
• The company also raised its fiscal 2026 guidance, signaling confidence in demand, with full-year revenue and EPS forecasts coming in above Wall Street expectations.
• Cisco highlighted surging AI infrastructure orders, including about $9 billion in hyperscaler AI-related orders for FY2026, while also announcing a quarterly dividend of $0.42 per share.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $101.87, but opened at $117.55. Cisco Systems shares last traded at $116.1850, with a volume of 23,792,991 shares changing hands.

The network equipment provider reported $1.06 EPS for the quarter, beating analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The business had revenue of $15.84 billion for the quarter, compared to analysts' expectations of $15.56 billion. During the same quarter in the prior year, the firm earned $0.96 earnings per share. The firm's revenue was up 12.0% on a year-over-year basis. 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.

Cisco Systems Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be paid a $0.42 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 annualized dividend and a yield of 1.4%. Cisco Systems's dividend payout ratio is currently 58.95%.

More Cisco Systems News

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

• Positive Sentiment: Cisco reported revenue of $15.84 billion, up 12% year over year and above Wall Street estimates, while adjusted EPS of $1.06 also topped expectations. Cisco Reports Third Quarter Earnings
• Positive Sentiment: The company raised full-year fiscal 2026 guidance, with revenue now projected at $62.8 billion-$63.0 billion and EPS at $4.27-$4.29, both above consensus, signaling confidence in demand trends. Reuters article
• Positive Sentiment: Cisco said AI infrastructure orders are surging, including about $9 billion in hyperscaler AI infrastructure orders for FY2026, reinforcing the market’s view that Cisco is becoming a bigger AI play. Article about AI infrastructure orders
• Positive Sentiment: The company also announced a quarterly dividend of $0.42 per share, which supports its appeal to income-focused investors. MarketBeat dividend note
• Neutral Sentiment: Cisco is cutting about 4,000 jobs as part of an AI-focused restructuring, with up to $1 billion in related charges; investors see this as a margin/efficiency move, but it also adds near-term execution risk. WSJ article

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on CSCO shares. Erste Group Bank lowered shares of Cisco Systems from a "buy" rating to a "hold" rating in a report on Wednesday, February 18th. Zacks Research lowered shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. HSBC lifted their price objective on Cisco Systems from $74.00 to $77.00 and gave the stock a "hold" rating in a report on Friday, February 13th. JPMorgan Chase & Co. increased their target price on Cisco Systems from $95.00 to $96.00 in a report on Monday. Finally, Truist Financial started coverage on Cisco Systems in a research report on Tuesday, March 31st. They set a "buy" rating and a $94.00 price target on the stock. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, Cisco Systems has a consensus rating of "Moderate Buy" and a consensus price target of $90.29.

Insiders Place Their Bets

In other Cisco Systems news, EVP Thimaya K. Subaiya sold 1,744 shares of the business's stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $77.07, for a total transaction of $134,410.08. Following the transaction, the executive vice president directly owned 156,693 shares of the company's stock, valued at approximately $12,076,329.51. The trade was a 1.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Oliver Tuszik sold 3,132 shares of the firm's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $79.74, for a total transaction of $249,745.68. Following the completion of the sale, the executive vice president directly owned 188,613 shares of the company's stock, valued at approximately $15,040,000.62. This represents a 1.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 46,431 shares of company stock valued at $3,574,820 over the last quarter. 0.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cisco Systems

Several hedge funds have recently bought and sold shares of the business. Mizuho Markets Americas LLC bought a new position in shares of Cisco Systems during the first quarter valued at $22,889,000. RMG Wealth Management LLC grew its position in Cisco Systems by 308.7% during the 1st quarter. RMG Wealth Management LLC now owns 425 shares of the network equipment provider's stock valued at $33,000 after purchasing an additional 321 shares during the last quarter. Dickmeyer Boyce Financial Management Inc. bought a new stake in Cisco Systems during the 1st quarter valued at about $2,371,000. Gibbs Wealth Management raised its holdings in Cisco Systems by 27.6% in the first quarter. Gibbs Wealth Management now owns 28,881 shares of the network equipment provider's stock worth $2,241,000 after buying an additional 6,249 shares during the last quarter. Finally, Ascension Capital Advisors Inc. bought a new position in shares of Cisco Systems in the first quarter worth approximately $238,000. Institutional investors own 73.33% of the company's stock.

Cisco Systems Trading Up 14.7%

The stock has a market cap of $461.60 billion, a PE ratio of 40.97, a PEG ratio of 3.73 and a beta of 0.92. The company has a quick ratio of 0.85, a current ratio of 0.96 and a debt-to-equity ratio of 0.45. The stock's fifty day moving average price is $83.93 and its 200 day moving average price is $79.36.

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.

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