Cisco Systems (NASDAQ:CSCO) Posts Earnings Results, Beats Expectations By $0.03 EPS

Cisco Systems (NASDAQ:CSCO) released its quarterly earnings results on Wednesday. The network equipment provider reported $1.06 earnings per share for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03, 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 the consensus estimate of $15.56 billion. During the same period in the previous year, the business earned $0.96 earnings per share. The firm’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 12.5%

Shares of NASDAQ CSCO traded up $12.72 during trading on Thursday, hitting $114.59. 49,390,149 shares of the company traded hands, compared to its average volume of 22,900,266. The business’s fifty day moving average is $83.93 and its 200 day moving average is $79.36. Cisco Systems has a fifty-two week low of $62.30 and a fifty-two week high of $119.36. The firm has a market capitalization of $452.62 billion, a price-to-earnings ratio of 40.27, a P/E/G ratio of 3.73 and a beta of 0.92. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96.

Cisco Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be issued a dividend of $0.42 per share. The ex-dividend date is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio is currently 58.95%.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Cisco beat fiscal Q3 expectations, reporting $1.06 in adjusted EPS on $15.84 billion in revenue, both above estimates, which reinforced confidence in its core business and helped drive the stock higher. Cisco Q3 earnings report
• Positive Sentiment: The company raised full-year guidance for both revenue and earnings, signaling that demand is still accelerating rather than slowing after the quarter ended. Cisco reports third quarter earnings
• Positive Sentiment: Cisco highlighted about $9 billion in FY 2026 hyperscaler AI infrastructure orders, which investors view as evidence that the company is benefiting from the AI spending boom and a broader networking “supercycle.” Cisco CEO says tech is entering a networking supercycle
• Positive Sentiment: Several brokerages raised price targets and reaffirmed bullish ratings after the results, adding more support for the stock’s move higher. Evercore raises Cisco price target
• Neutral Sentiment: Cisco announced it will cut roughly 4,000 jobs as it shifts spending toward AI, which may help margins over time but also signals a restructuring charge near term. Reuters article on AI push with job cuts
• Neutral Sentiment: Cisco also announced a quarterly dividend, which is supportive for income investors but is not the main driver of today’s stock move. Cisco stock information

Analysts Set New Price Targets

CSCO has been the subject of several research analyst reports. New Street Research upped their price target on shares of Cisco Systems from $82.00 to $122.00 and gave the stock a “neutral” rating in a report on Thursday. Piper Sandler upped their price target on shares of Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a report on Thursday. JPMorgan Chase & Co. upped their price target on shares of Cisco Systems from $95.00 to $96.00 in a report on Monday. Rosenblatt Securities reiterated a “buy” rating and set a $100.00 price target on shares of Cisco Systems in a report on Thursday, February 12th. Finally, Evercore upped their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the stock an “outperform” rating in a report on Thursday. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $108.32.

Insider Activity

In other news, EVP Deborah L. Stahlkopf sold 7,981 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $79.50, for a total transaction of $634,489.50. Following the completion of the sale, the executive vice president owned 187,097 shares in the company, valued at $14,874,211.50. This trade represents a 4.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Oliver Tuszik sold 3,132 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $79.74, for a total transaction of $249,745.68. Following the sale, the executive vice president owned 188,613 shares of the company’s stock, valued at approximately $15,040,000.62. The trade was a 1.63% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 46,431 shares of company stock valued at $3,574,820. Corporate insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Intesa Sanpaolo Wealth Management bought a new position in Cisco Systems in the 4th quarter worth approximately $25,000. Jessup Wealth Management Inc bought a new position in Cisco Systems in the 4th quarter worth approximately $29,000. Swiss RE Ltd. bought a new position in Cisco Systems in the 4th quarter worth approximately $35,000. Quattro Advisors LLC bought a new position in Cisco Systems in the 4th quarter worth approximately $49,000. Finally, Birchwood Financial Partners Inc. bought a new position in Cisco Systems in the 4th quarter worth approximately $49,000. 73.33% of the stock is owned by institutional investors.

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.