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Cisco Systems, Inc. (CSCO), headquartered in San Jose, California, is a global leader in networking and IT solutions, providing technology to connect and secure networks worldwide. With a market cap of $224.6 billion, Cisco designs, manufactures, and sells hardware, software, and telecommunications equipment for businesses across various industries. The company is set to announce its Q1 earnings on Wednesday, Nov. 20.
Ahead of the event, analysts expect CSCO to report a profit of $0.71 per share, down 27.6% from $0.98 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in the last four quarters.
Its adjusted earnings of $0.71 per share for the last quarter surpassed the consensus estimate by 1.4%. Cisco’s Q4 outperformance was fueled by steady demand in AI, cloud, and cybersecurity, alongside operational solid discipline.
For fiscal 2025, analysts expect CSCO to report an EPS of $2.90, down 7.1% from $3.12 in fiscal 2023.
CSCO stock is up 10.3% YTD, underperforming the broader S&P 500 Index's ($SPX) 21.8% gains and the iShares U.S. Telecommunications ETF (IYZ) 13.1% gain over the same time frame.
Cisco’s shares have lagged due to declining demand in its networking segment as enterprises shift toward cloud-based solutions over traditional equipment. However, Cisco’s shares hit a 52-week high, driven by AI-related solid growth prospects, strategic investments in cloud and cybersecurity, and a robust partner ecosystem.
Also, following its better-than-expected Q4 earnings report on Aug. 14, Cisco's stock rose marginally. Plus, for fiscal Q1, the company forecasts revenue between $13.7 billion and $13.9 billion. For fiscal 2025, revenues are expected between $55 billion and $56.2 billion.
The consensus opinion on CSCO stock is moderately optimistic, with an overall “Moderate Buy” rating. Of 22 analysts covering the stock, seven advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 13 advise “Hold.”
CSCO's average analyst price target is $56.50, suggesting a potential upside of 1.5% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
