Cisco Systems (NASDAQ:CSCO) Releases 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

A number of analysts recently weighed in on CSCO shares. Bank of America raised their target price on shares of Cisco Systems from $135.00 to $150.00 and gave the stock a “buy” rating in a report on Monday, June 8th. Argus raised their price objective on Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, May 19th. The Goldman Sachs Group lifted their target price on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a report on Wednesday, June 3rd. Morgan Stanley boosted their target price on Cisco Systems from $120.00 to $130.00 and gave the stock an “overweight” rating in a research report on Friday, June 12th. Finally, Weiss Ratings raised Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, May 29th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $123.14.

Cisco Systems Trading Up 2.9%

Shares of CSCO stock traded up $3.45 during trading hours on Wednesday, reaching $123.88. 34,146,419 shares of the stock traded hands, compared to its average volume of 23,492,877. 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 has a market capitalization of $488.26 billion, a PE ratio of 40.22, a PEG ratio of 2.76 and a beta of 1.02. Cisco Systems has a 1-year low of $65.75 and a 1-year high of $130.37. The business has a fifty day moving average price of $117.61 and a 200 day moving average price of $98.38.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The firm had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.82 billion. 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. On average, equities research analysts forecast that Cisco Systems will post 3.54 EPS for the current year.

Insiders Place Their Bets

In other Cisco Systems news, CEO Charles Robbins sold 21,400 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the completion of the sale, the chief executive officer directly owned 637,085 shares in the company, valued at approximately $76,469,312.55. This trade represents a 3.25% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,169 shares of the company’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $117.28, for a total value of $840,780.32. Following the completion of the transaction, the insider owned 246,737 shares in the company, valued at $28,937,315.36. This represents a 2.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 47,650 shares of company stock valued at $5,668,823 over the last quarter. 0.01% of the stock is owned by insiders.

Cisco Systems News Roundup

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

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp boosted its stake 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 buying an additional 1,057,962 shares during the period. Morgan Stanley increased its stake in shares of Cisco Systems by 0.3% in the fourth quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider’s stock worth $5,802,382,000 after acquiring an additional 206,352 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Cisco Systems by 2.1% in the fourth 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 acquiring an additional 1,096,794 shares during the last quarter. Northern Trust Corp raised its holdings in shares of 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 worth $3,318,275,000 after acquiring an additional 1,631,703 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its position 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 valued at $2,256,144,000 after purchasing an additional 14,874,407 shares during the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.

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.