Cisco Systems (NASDAQ:CSCO) Announces Quarterly Earnings Results

Cisco Systems (NASDAQ:CSCO) posted its quarterly earnings data on Wednesday. The network equipment provider reported $1.06 EPS for the quarter, beating analysts’ consensus estimates of $1.04 by $0.02, FiscalAI reports. Cisco Systems had a net margin of 19.22% and a return on equity of 27.88%. The company had revenue of $15.84 billion during the quarter, compared to analyst estimates of $15.56 billion. During the same period in the prior year, the firm earned $0.96 earnings per share. The business’s quarterly revenue was up 12.0% on a year-over-year basis. Cisco Systems updated its Q4 2026 guidance to 1.160-1.180 EPS and its FY 2026 guidance to 4.270-4.290 EPS.

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

• Cisco delivered a record Q3 with revenue of $15.8 billion, up 12% year over year, and non-GAAP EPS of $1.06, up 10%, both above the high end of guidance. Management said the company is on track for its strongest year ever.
• AI infrastructure demand accelerated sharply, with hyperscaler AI orders totaling $1.9 billion in Q3 and year-to-date orders reaching $5.3 billion, already above prior full-year expectations. Cisco now expects about $9 billion of hyperscaler AI infrastructure orders in FY2026 and roughly $4 billion of related revenue.
• Broad-based order growth remained very strong, with total product orders up 35% year over year and ex-hyperscaler orders up 19%. Enterprise, public sector, service provider/cloud, and telco customers all showed healthy demand, especially across networking.
• Margins were pressured by product mix and memory costs, as non-GAAP gross margin fell to 66% from 68.6% a year ago. Management said pricing actions, memory-reduction programs, and supply-chain controls are helping stabilize margins, but gross margin remains under some pressure.
• Cisco announced a restructuring to reallocate resources toward silicon, optics, security, and AI, with up to $1 billion of pre-tax charges expected over FY2026-FY2027. The company said the move is aimed at shifting investment to faster-growing areas rather than driving near-term savings.

Cisco Systems Stock Up 2.6%

Shares of NASDAQ:CSCO traded up $2.58 during trading on Wednesday, reaching $101.87. 43,126,254 shares of the company traded hands, compared to its average volume of 19,095,746. The firm has a fifty day simple moving average of $83.48 and a 200 day simple moving average of $79.14. 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 has a 1-year low of $60.85 and a 1-year high of $102.01. The firm has a market cap of $402.38 billion, a P/E ratio of 35.74, a price-to-earnings-growth ratio of 3.73 and a beta of 0.92.

Analyst Ratings Changes

Several brokerages recently commented on CSCO. Evercore upped their price target on shares of Cisco Systems from $100.00 to $110.00 and gave the company an “outperform” rating in a research report on Monday, May 4th. Erste Group Bank cut shares of Cisco Systems from a “buy” rating to a “hold” rating in a research report on Wednesday, February 18th. Citigroup boosted their target price on shares of Cisco Systems from $85.00 to $90.00 and gave the company a “buy” rating in a research note on Thursday, February 12th. Truist Financial started coverage on Cisco Systems in a research report on Tuesday, March 31st. They issued a “buy” rating and a $94.00 target price for the company. Finally, Wall Street Zen lowered Cisco Systems from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $90.29.

Cisco Systems News Roundup

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

• Positive Sentiment: Cisco beat Wall Street expectations, reporting non-GAAP EPS of $1.06 versus $1.04 expected and revenue of $15.8 billion versus $15.56 billion expected, signaling solid demand across the business. CISCO REPORTS THIRD QUARTER EARNINGS
• Positive Sentiment: The company raised its outlook for both fiscal 2026 and Q4 2026, with guidance coming in above analyst estimates, which is helping drive investor confidence in the stock. Earnings report and conference call
• Positive Sentiment: Management said AI infrastructure demand is accelerating, supporting a “beat and raise” narrative and suggesting Cisco is benefiting from enterprise networking and data-center spending tied to AI buildouts. Cisco stock pops as Q3 earnings defy memory headwinds
• Neutral Sentiment: Cisco also announced a restructuring that will eliminate about 4,000 jobs as it shifts resources toward AI growth, a move that may improve long-term focus but creates near-term execution and restructuring-cost questions. Cisco to Cut Jobs in Shift to Capture More AI Demand
• Neutral Sentiment: Earlier reports showed Cisco entering earnings at all-time highs and potentially overbought, so some of the move may reflect momentum and investor enthusiasm already building ahead of results. Cisco stock at its most overbought since 2018

Insiders Place Their Bets

In related news, SVP Maria Victoria Wong sold 2,179 shares of the stock in a transaction 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 completion of the sale, the senior vice president directly owned 28,807 shares in the company, valued at approximately $2,239,456.18. This trade represents a 7.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Charles Robbins sold 19,545 shares of Cisco Systems stock in a transaction 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 sale, the chief executive officer directly owned 671,095 shares of the company’s stock, valued at approximately $51,003,220. The trade was a 2.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 46,431 shares of company stock valued at $3,574,820 in the last three months. Company insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

Several large investors have recently made changes to their positions in the company. Intesa Sanpaolo Wealth Management acquired a new stake in Cisco Systems in the fourth quarter valued at approximately $25,000. Jessup Wealth Management Inc acquired a new position in shares of Cisco Systems during the 4th quarter worth $29,000. Swiss RE Ltd. bought a new position in shares of Cisco Systems during the 4th quarter valued at $35,000. Quattro Advisors LLC acquired a new stake in shares of Cisco Systems in the 4th quarter valued at $49,000. Finally, Birchwood Financial Partners Inc. acquired a new stake in shares of Cisco Systems in the 4th quarter valued at $49,000. Institutional investors own 73.33% of the company’s stock.

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.