Cisco Systems (NASDAQ:CSCO) Issues Earnings Results

Cisco Systems (NASDAQ:CSCO) posted its quarterly earnings results on Wednesday. The network equipment provider reported $1.04 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.02, FiscalAI reports. Cisco Systems had a return on equity of 27.29% and a net margin of 18.38%.The business had revenue of $15.35 billion for the quarter, compared to the consensus estimate of $15.11 billion. During the same quarter in the previous year, the business earned $0.94 EPS. The company’s quarterly revenue was up 9.7% compared to the same quarter last year.

Here are the key takeaways from Cisco Systems’ conference call:

• Cisco reported a beat and momentum in Q2 with record revenue of $15.3B (+10% YoY) and non-GAAP EPS of $1.04 (+11%), raised dividend and continued $3B of capital returns reinforce management’s commitment to shareholder returns and its FY26 guidance.
• AI infrastructure is a major growth driver — Cisco took $2.1B of hyperscaler AI orders in Q2, now expects AI orders in excess of $5B and to recognize >$3B of hyperscaler AI revenue in FY26, and highlighted product momentum (1M Silicon One chips shipped, new G300 102.4Tb chip and optics).
• Non-GAAP gross margin declined ~120 bps (product gross margin down 130 bps) driven primarily by higher memory costs and unfavorable mix; management is raising prices and revising partner terms but flagged near-term margin pressure.
• Security revenue was down 4% as Splunk shifts from on?prem to cloud (short-term revenue drag), yet new/refreshed security offerings are gaining traction with ~1,000 new customers in Q2 and 2.5M Secure Access users booked.

Cisco Systems Trading Down 0.9%

Shares of CSCO traded down $0.75 during midday trading on Wednesday, reaching $85.54. The company had a trading volume of 34,126,280 shares, compared to its average volume of 22,151,523. The company has a quick ratio of 0.83, a current ratio of 0.93 and a debt-to-equity ratio of 0.46. Cisco Systems has a 1-year low of $52.11 and a 1-year high of $88.18. The firm has a 50 day simple moving average of $77.75 and a 200-day simple moving average of $72.90. The stock has a market cap of $337.98 billion, a PE ratio of 32.16, a price-to-earnings-growth ratio of 3.28 and a beta of 0.87.

Insider Buying and Selling

In other news, EVP Deborah L. Stahlkopf sold 164,584 shares of Cisco Systems stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $77.85, for a total transaction of $12,812,864.40. Following the sale, the executive vice president owned 196,738 shares of the company’s stock, valued at approximately $15,316,053.30. The trade was a 45.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Michael D. Capellas sold 16,150 shares of Cisco Systems stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $77.28, for a total value of $1,248,072.00. Following the completion of the sale, the director owned 157,218 shares in the company, valued at $12,149,807.04. This represents a 9.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,044,865 shares of company stock worth $81,397,635 over the last ninety days. 0.01% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Northern Trust Corp boosted its position in shares of Cisco Systems by 3.5% during the 3rd quarter. Northern Trust Corp now owns 48,498,612 shares of the network equipment provider’s stock worth $3,318,275,000 after purchasing an additional 1,631,703 shares during the period. Caisse de depot et placement du Quebec lifted its stake in Cisco Systems by 11.9% during the third quarter. Caisse de depot et placement du Quebec now owns 8,518,018 shares of the network equipment provider’s stock worth $582,803,000 after purchasing an additional 903,030 shares in the last quarter. CANADA LIFE ASSURANCE Co boosted its position in shares of Cisco Systems by 5.9% during the third quarter. CANADA LIFE ASSURANCE Co now owns 7,094,878 shares of the network equipment provider’s stock worth $480,569,000 after buying an additional 398,144 shares during the period. AQR Capital Management LLC grew its stake in shares of Cisco Systems by 12.5% in the third quarter. AQR Capital Management LLC now owns 5,637,731 shares of the network equipment provider’s stock valued at $385,564,000 after buying an additional 627,263 shares in the last quarter. Finally, Corient Private Wealth LLC raised its holdings in shares of Cisco Systems by 0.6% in the 2nd quarter. Corient Private Wealth LLC now owns 2,415,532 shares of the network equipment provider’s stock valued at $167,216,000 after buying an additional 15,290 shares during the period. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems News Summary

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

• Positive Sentiment: Record revenue, AI demand and raised full?year outlook: Cisco reported Q2 revenue of ~$15.3B (up ~10% YoY), highlighted $2.1B of AI infrastructure orders from hyperscalers, and raised FY26 revenue and EPS ranges — supportive for longer?term growth expectations. CISCO REPORTS SECOND QUARTER EARNINGS
• Positive Sentiment: New AI networking silicon and systems: Cisco unveiled the Silicon One G300 and G300?powered systems (N9000/8000) targeting AI data centers — a strategic product push into hyperscaler AI networking that can expand addressable market and margins over time. Cisco unveils new AI networking chip
• Positive Sentiment: Orders and margin strength: Management reported accelerating product orders (networking orders >20% YoY) and improved non?GAAP margins — evidence demand is translating into higher?quality revenue and pricing leverage. CISCO REPORTS SECOND QUARTER EARNINGS
• Neutral Sentiment: Reported beats but small and mixed: Cisco beat consensus on non?GAAP EPS (~$1.04 vs ~$1.02) and revenue vs some estimates, but the beats were modest — results reinforce the business story but didn’t dramatically exceed expectations. Cisco Systems (CSCO) Tops Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Analyst upgrades and targets supportive but mixed: Several firms recently raised ratings/targets (median ~$90.5); this underpins investor conviction but doesn’t eliminate sensitivity to near?term guidance. Cisco Systems (NASDAQ:CSCO) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says
• Negative Sentiment: Market sold off on “mediocre” near?term outlook: Despite beats and AI commentary, investors reacted to guidance that was generally in?line with, not above, elevated expectations — headlines noted a multi?percent drop after the print. Cisco’s stock drops 7% on mediocre forecast even as earnings and revenue top estimates
• Negative Sentiment: GAAP vs non?GAAP nuance, cash?flow and insider selling flagged: Some reports highlighted lower GAAP EPS/cash?from?operations dynamics and extensive insider selling disclosures — items that can increase short?term volatility and investor caution. Cisco Systems (CSCO) Releases Q2 2026 Earnings: Revenue Growth but EPS Miss
• Neutral Sentiment: Short?interest reporting appears anomalous: recent short?interest entries show 0 shares (data likely erroneous) and do not provide a reliable signal today.

Analysts Set New Price Targets

CSCO has been the topic of several research reports. Bank of America increased their price target on shares of Cisco Systems from $85.00 to $95.00 and gave the stock a “buy” rating in a report on Thursday, November 13th. BNP Paribas Exane upped their price target on Cisco Systems from $76.00 to $86.00 and gave the stock an “outperform” rating in a report on Thursday, November 13th. HSBC increased their target price on Cisco Systems from $69.00 to $74.00 and gave the company a “hold” rating in a research report on Friday, November 14th. Weiss Ratings reissued a “buy (b)” rating on shares of Cisco Systems in a report on Tuesday, January 27th. Finally, President Capital decreased their price objective on shares of Cisco Systems from $90.00 to $88.00 in a report on Wednesday, December 24th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, Cisco Systems has an average rating of “Moderate Buy” and a consensus target price of $94.45.

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.