Cisco Systems (NASDAQ:CSCO) Trading 2.6% Higher on Strong Earnings

Key Points

• Cisco shares rose 2.6% after the company reported stronger-than-expected quarterly results, with the stock briefly hitting $102.01 on volume well above average.
• Quarterly earnings and revenue beat estimates: Cisco posted EPS of $1.06 versus the $1.04 consensus and revenue of $15.84 billion versus $15.56 billion expected.
• Management issued upbeat guidance for both Q4 2026 and full-year 2026, while analysts remain largely positive with a consensus Moderate Buy rating and a $90.29 target price.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) traded up 2.6% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $102.01 and last traded at $101.87. 37,445,079 shares changed hands during trading, an increase of 67% from the average session volume of 22,397,385 shares. The stock had previously closed at $99.29.

The network equipment provider reported $1.06 earnings per share for the quarter, topping analysts' consensus estimates of $1.04 by $0.02. Cisco Systems had a net margin of 19.22% and a return on equity of 27.88%. The business had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. 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.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Wall Street commentary ahead of earnings has been upbeat, with analysts pointing to strong AI networking demand, robust product orders, and hyperscaler momentum as potential drivers of double-digit revenue growth. The Zacks Analyst Blog Cisco, Arista Networks, Dell and Hewlett
• Positive Sentiment: Cisco joined a multi-company AI data center alliance aimed at setting open standards for optical connectivity, a move that reinforces its role in the fast-growing AI infrastructure buildout. Cisco Joins AI Data Center Alliance As Stock Trades Above Targets
• Positive Sentiment: Investor optimism is also being supported by expectations that Cisco will post another quarter of earnings and revenue growth, with analysts looking for EPS of about $1.03-$1.04 and revenue around $15.56 billion. Cisco Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts
• Positive Sentiment: Jim Cramer said Cisco’s data center business looks bright, adding to the upbeat pre-earnings narrative around the company’s growth in networking and AI-related infrastructure. Jim Cramer on Cisco: “The Future Is Bright for the Data Center Part of the Business”
• Neutral Sentiment: Several previews note that Cisco is heading into earnings after a strong rally and at or near record highs, so results and guidance may need to be solid to justify the recent valuation expansion. Cisco Q3 Preview: Stock Hits New Highs, Expert Asks 'Can It Return To Those Parabolic '90s Like Returns?'
• Neutral Sentiment: Traders are expecting a sizable post-earnings move, which suggests the stock could stay volatile around the report even if the long-term outlook remains constructive. How Much Is Cisco Stock Expected to Move After Earnings This Week?

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the stock. UBS Group upped their price target on shares of Cisco Systems from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Citigroup upped their price target on shares of Cisco Systems from $85.00 to $90.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Truist Financial assumed coverage on shares of Cisco Systems in a research note on Tuesday, March 31st. They issued a "buy" rating and a $94.00 price target on the stock. Zacks Research downgraded shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Finally, Evercore increased their target price on shares of Cisco Systems from $100.00 to $110.00 and gave the stock an "outperform" rating in a research report on Monday, May 4th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $90.29.

Insider Activity at Cisco Systems

In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 7,981 shares of the company's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $79.50, for a total transaction of $634,489.50. Following the completion of the sale, the executive vice president directly owned 187,097 shares in the company, valued at $14,874,211.50. This represents a 4.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Charles Robbins sold 19,545 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $76.00, for a total transaction of $1,485,420.00. Following the sale, the chief executive officer owned 671,095 shares of the company's stock, valued at $51,003,220. This trade represents a 2.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 46,431 shares of company stock valued at $3,574,820. 0.01% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cisco Systems

Several hedge funds have recently made changes to their positions in the stock. Measured Wealth Private Client Group LLC lifted its stake in shares of Cisco Systems by 6.4% in the first quarter. Measured Wealth Private Client Group LLC now owns 5,607 shares of the network equipment provider's stock valued at $435,000 after buying an additional 335 shares during the period. Signature Equity Partners LLC lifted its stake in shares of Cisco Systems by 148.1% in the first quarter. Signature Equity Partners LLC now owns 7,099 shares of the network equipment provider's stock valued at $551,000 after buying an additional 4,238 shares during the period. CI Investments Inc. lifted its stake in shares of Cisco Systems by 1.8% in the first quarter. CI Investments Inc. now owns 377,814 shares of the network equipment provider's stock valued at $29,315,000 after buying an additional 6,563 shares during the period. Saturna Capital Corp lifted its stake in shares of Cisco Systems by 2.7% in the first quarter. Saturna Capital Corp now owns 1,788,543 shares of the network equipment provider's stock valued at $138,773,000 after buying an additional 46,233 shares during the period. Finally, Phillip James Consulting Co. lifted its stake in shares of Cisco Systems by 4,560.0% in the first quarter. Phillip James Consulting Co. now owns 2,330 shares of the network equipment provider's stock valued at $180,000 after buying an additional 2,280 shares during the period. Institutional investors own 73.33% of the company's stock.

Cisco Systems Trading Up 2.6%

The company has a debt-to-equity ratio of 0.45, a current ratio of 0.96 and a quick ratio of 0.85. The company's 50 day moving average is $83.48 and its two-hundred day moving average is $79.14. The firm has a market cap of $402.38 billion, a P/E ratio of 35.74, a PEG ratio of 3.70 and a beta of 0.92.

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.

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