/Cisco%20Systems%2C%20Inc_%20HQ-by%20Sundry%20Photography%20via%20iStock.jpg)
San Jose, California-based Cisco Systems, Inc. (CSCO) designs, manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry. With a market cap of $354.3 billion, the company offers enterprise network security, software development, data collaboration, cloud computing, and other related services. The technology giant is expected to announce its fiscal third-quarter earnings for 2026 in the near future.
Ahead of the event, analysts expect CSCO to report a profit of $0.86 per share on a diluted basis, up 10.3% from $0.78 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect CSCO to report EPS of $3.40, up 10.8% from $3.07 in fiscal 2025. Its EPS is expected to rise 9.1% year over year to $3.71 in fiscal 2027.
CSCO stock has outperformed the S&P 500 Index’s ($SPX) 33.6% gains over the past 52 weeks, with shares up 65% during this period. Similarly, it outperformed the State Street Technology Select Sector SPDR ETF’s (XLK) 64.7% gains over the same time frame.
Cisco outperformed with double-digit product order growth across all regions, led by $2.1 billion in AI infrastructure orders. Its demand was driven by Silicon One systems like the G300, energy-efficient N9000/8000 platforms, and new 1.6T/800G optics. The company has design wins with five of six major hyperscalers, while campus upgrades and over a $2.5 billion sovereign cloud pipeline add further runway. Management flagged strong AI momentum but noted margin pressure from memory costs and Splunk’s cloud shift.
Analysts’ consensus opinion on CSCO stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 26 analysts covering the stock, 15 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 10 give a “Hold.” While CSCO currently trades above its mean price target of $88.76, the Street-high price target of $100 suggests an upside potential of 11.5%.
