Wellington Management Group LLP Grows Position in Cisco Systems, Inc. $CSCO

Key Points

• Wellington Management raised its stake in Cisco by 19.5%, buying 5,498,375 shares to own 33,748,414 shares valued at about $2.309 billion at quarter-end.
• Cisco delivered a beat‑and‑raise quarter with revenue and EPS upside and hyperscale/cloud AI orders up ~61% to $2.1B, triggering analyst upgrades and higher price targets as a near‑term revenue catalyst.
• Key risks include management's warning of margin pressure from higher memory costs and a hardware‑heavy mix, plus modest recent insider selling that could weigh on near‑term sentiment.

Wellington Management Group LLP lifted its holdings in Cisco Systems, Inc. (NASDAQ:CSCO - Free Report) by 19.5% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 33,748,414 shares of the network equipment provider's stock after purchasing an additional 5,498,375 shares during the period. Wellington Management Group LLP owned about 0.86% of Cisco Systems worth $2,309,066,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in CSCO. Norges Bank bought a new position in Cisco Systems in the second quarter worth about $3,816,825,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main lifted its stake in shares of Cisco Systems by 413.3% during the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 22,393,371 shares of the network equipment provider's stock worth $1,553,645,000 after buying an additional 18,030,441 shares during the period. Franklin Resources Inc. lifted its stake in shares of Cisco Systems by 46.2% during the second quarter. Franklin Resources Inc. now owns 40,836,858 shares of the network equipment provider's stock worth $2,833,261,000 after buying an additional 12,904,969 shares during the period. Arrowstreet Capital Limited Partnership grew its holdings in shares of Cisco Systems by 110.2% during the third quarter. Arrowstreet Capital Limited Partnership now owns 18,406,442 shares of the network equipment provider's stock valued at $1,259,369,000 after buying an additional 9,648,265 shares during the last quarter. Finally, Laurel Wealth Advisors LLC increased its position in shares of Cisco Systems by 6,778.2% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 6,810,012 shares of the network equipment provider's stock valued at $472,479,000 after acquiring an additional 6,711,004 shares during the period. 73.33% of the stock is owned by institutional investors.

Key Cisco Systems News

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

• Positive Sentiment: Beat-and-raise quarter: Cisco reported record Q2 revenue and EPS, with hyperscale/cloud AI orders up ~61% to $2.1B and management raising annual AI order expectations — a clear near-term revenue catalyst and reason for investor optimism. Article Title
• Positive Sentiment: Analyst upgrades and higher targets: Multiple firms have raised ratings/targets (Evercore, Citi, Argus, etc.), which supports buying interest and helps lift the stock. Article Title
• Positive Sentiment: Product share gains: Dell’Oro reports Cisco edged out competitors for #1 indoor Wi‑Fi 7 revenue share in 2025 thanks to aggressive pricing — supports near-term hardware demand and competitive positioning. Article Title
• Neutral Sentiment: Dividend raise: Cisco bumped its quarterly dividend to $0.42 (annualized $1.68), a modest positive for income buyers but not a major growth signal. Article Title
• Neutral Sentiment: Valuation & pullback debate: Several pieces weigh whether the recent pullback makes CSCO reasonably priced — useful context for entries but mixed impact on immediate direction. Article Title
• Neutral Sentiment: Investor outreach: Management’s conference presentations (e.g., Morgan Stanley) reiterate networking and AI strengths — improves visibility but is informational rather than catalytic. Article Title
• Negative Sentiment: Margin pressure: Management warned of higher memory costs and a hardware-heavy mix that could compress gross margins despite revenue growth — a key risk to near-term EPS expansion. Article Title
• Negative Sentiment: Insider selling: Recent SEC filings show EVP Thimaya Subaiya sold 1,744 shares and SVP Maria Victoria Wong sold 551 shares last week; amounts are small vs. their holdings but can create short-term sentiment headwinds. Form 4 - Subaiya Form 4 - Wong

Cisco Systems Price Performance

NASDAQ:CSCO opened at $78.33 on Friday. The company has a quick ratio of 0.85, a current ratio of 0.96 and a debt-to-equity ratio of 0.45. Cisco Systems, Inc. has a 52 week low of $52.11 and a 52 week high of $88.18. The stock's 50-day moving average price is $78.02 and its 200-day moving average price is $74.45. The stock has a market capitalization of $309.39 billion, a PE ratio of 27.48, a price-to-earnings-growth ratio of 2.94 and a beta of 0.87.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.02. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The company had revenue of $15.35 billion for the quarter, compared to the consensus estimate of $15.11 billion. During the same quarter in the prior year, the business posted $0.94 earnings per share. Cisco Systems's revenue for the quarter was up 9.7% on a year-over-year basis. As a group, equities analysts expect that Cisco Systems, Inc. will post 3.04 EPS for the current fiscal year.

Cisco Systems Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 22nd. Stockholders of record on Thursday, April 2nd will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.1%. This is a positive change from Cisco Systems's previous quarterly dividend of $0.41. The ex-dividend date is Thursday, April 2nd. Cisco Systems's dividend payout ratio (DPR) is currently 57.54%.

Wall Street Analyst Weigh In

A number of brokerages have commented on CSCO. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cisco Systems in a research report on Tuesday, January 27th. CICC Research raised their price objective on Cisco Systems from $84.00 to $96.00 and gave the stock an "outperform" rating in a research note on Friday, February 13th. Argus upgraded Cisco Systems to a "strong-buy" rating in a research report on Friday, February 13th. Morgan Stanley increased their price target on shares of Cisco Systems from $82.00 to $91.00 and gave the stock an "overweight" rating in a report on Wednesday, December 17th. Finally, Erste Group Bank lowered shares of Cisco Systems from a "buy" rating to a "hold" rating in a research report on Wednesday, February 18th. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, Cisco Systems has a consensus rating of "Moderate Buy" and a consensus price target of $89.55.

Insider Activity

In other news, SVP Maria Victoria Wong sold 2,179 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $77.74, for a total transaction of $169,395.46. Following the transaction, the senior vice president directly owned 28,807 shares in the company, valued at $2,239,456.18. The trade was a 7.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Charles Robbins sold 19,545 shares of the stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $76.00, for a total value of $1,485,420.00. Following the completion of the sale, the chief executive officer directly owned 671,095 shares of the company's stock, valued at approximately $51,003,220. This represents a 2.83% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 75,799 shares of company stock valued at $5,815,306 in the last ninety days. 0.01% of the stock is currently owned by corporate insiders.

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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