Cisco Systems (NASDAQ:CSCO) Issues Q1 2027 Earnings Guidance

Cisco Systems (NASDAQ:CSCO) updated its first quarter 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 1.320-1.340 for the period, compared to the consensus earnings per share estimate of 1.110. The company issued revenue guidance of $18.0 billion-$18.2 billion, compared to the consensus revenue estimate of $16.7 billion. Cisco Systems also updated its FY 2027 guidance to 5.050-5.110 EPS.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the stock. Morgan Stanley lifted their price objective on shares of Cisco Systems from $120.00 to $130.00 and gave the company an “overweight” rating in a research report on Friday, June 12th. The Goldman Sachs Group upped their target price on shares of Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. Piper Sandler raised their price target on shares of Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Citic Securities lifted their price target on Cisco Systems from $90.00 to $130.00 in a report on Friday, May 15th. Finally, Citigroup boosted their price objective on Cisco Systems from $90.00 to $112.00 and gave the stock a “buy” rating in a research report on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $123.14.

Cisco Systems Price Performance

Cisco Systems stock traded up $3.45 during trading hours on Wednesday, hitting $123.88. 33,459,840 shares of the company traded hands, compared to its average volume of 23,492,877. The firm has a market cap of $488.26 billion, a P/E ratio of 40.22, a P/E/G ratio of 2.76 and a beta of 1.02. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The firm’s 50-day simple moving average is $117.61 and its two-hundred day simple moving average is $98.38. Cisco Systems has a 1-year low of $65.75 and a 1-year high of $130.37.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. The company had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.82 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, analysts forecast that Cisco Systems will post 3.54 earnings per share for the current fiscal year.

Insider Transactions at Cisco Systems

In other news, EVP Oliver Tuszik sold 2,607 shares of Cisco Systems stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $121.12, for a total transaction of $315,759.84. Following the transaction, the executive vice president directly owned 172,727 shares in the company, valued at approximately $20,920,694.24. This trade represents a 1.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,169 shares of the business’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $117.28, for a total value of $840,780.32. Following the completion of the sale, the insider directly owned 246,737 shares in the company, valued at $28,937,315.36. This represents a 2.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 47,650 shares of company stock valued at $5,668,823 over the last three months. 0.01% of the stock is owned by company insiders.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Cisco has raised its full-year outlook for AI infrastructure orders and is expanding its AI strategy through conference presentations, infrastructure investments and company-wide model routing. The developments support the view that AI networking is becoming a larger growth driver. Does Cisco’s Expanded AI Infrastructure Orders and Employee Agents Change The Bull Case For Cisco Systems
• Positive Sentiment: The rollout of personalized AI agents to approximately 90,000 employees, combined with specific AI-related revenue targets, signals that Cisco is attempting to convert internal AI adoption into measurable efficiency gains and new revenue streams. Cisco Puts 90,000 Workers On Personalized AI Agents With New Revenue Targets
• Positive Sentiment: Investors are expecting continued strong results after Cisco’s prior quarterly revenue and adjusted EPS exceeded consensus estimates, with analysts looking for roughly mid-to-high-teen growth in the upcoming quarter. How Much Traders Expect Cisco Stock to Move After Earnings
• Neutral Sentiment: Options markets imply an unusually large post-earnings move of approximately 8%, highlighting significant event risk as investors await management’s guidance on AI orders, networking demand and margins. Cisco Options Chain Braces for an 8% Earnings Swing
• Neutral Sentiment: In-line July CPI data helped support broader U.S. equity futures and reduced concern about an inflation-driven shift in interest-rate expectations, providing a favorable market backdrop for CSCO.
• Negative Sentiment: With Cisco trading near its 52-week high and at a relatively elevated earnings multiple, strong AI orders and guidance may already be reflected in the valuation, increasing the risk of a sell-the-news reaction if results or forecasts disappoint.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors and hedge funds have recently bought and sold shares of CSCO. State Street Corp boosted its position in shares of Cisco Systems by 0.5% during the 4th quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider’s stock valued at $15,060,995,000 after purchasing an additional 1,057,962 shares in the last quarter. Morgan Stanley raised its holdings in shares of Cisco Systems by 0.3% in the 4th quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider’s stock worth $5,802,382,000 after purchasing an additional 206,352 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of Cisco Systems by 2.1% in the 4th quarter. Bank of America Corp DE now owns 52,148,049 shares of the network equipment provider’s stock worth $4,016,964,000 after purchasing an additional 1,096,794 shares in the last quarter. Northern Trust Corp lifted its stake in Cisco Systems by 3.5% during the third quarter. Northern Trust Corp now owns 48,498,612 shares of the network equipment provider’s stock valued at $3,318,275,000 after purchasing an additional 1,631,703 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its holdings in Cisco Systems by 103.2% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 29,289,151 shares of the network equipment provider’s stock worth $2,256,144,000 after buying an additional 14,874,407 shares in the last quarter. 73.33% of the stock is owned by institutional investors and hedge funds.

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.