Cisco Systems (NASDAQ:CSCO) Shares Gap Up After Strong Earnings

Shares of Cisco Systems, Inc. (NASDAQ:CSCO) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $101.87, but opened at $117.55. Cisco Systems shares last traded at $116.1850, with a volume of 23,792,991 shares.

The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The firm had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. During the same period in the prior year, the company posted $0.96 earnings per share. The company’s quarterly revenue was up 12.0% on a year-over-year basis. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS.

Cisco Systems Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be paid a $0.42 dividend. The ex-dividend date is Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.4%. Cisco Systems’s 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 reported revenue of $15.84 billion, up 12% year over year and above Wall Street estimates, while adjusted EPS of $1.06 also topped expectations. Cisco Reports Third Quarter Earnings
• Positive Sentiment: The company raised full-year fiscal 2026 guidance, with revenue now projected at $62.8 billion-$63.0 billion and EPS at $4.27-$4.29, both above consensus, signaling confidence in demand trends. Reuters article
• Positive Sentiment: Cisco said AI infrastructure orders are surging, including about $9 billion in hyperscaler AI infrastructure orders for FY2026, reinforcing the market’s view that Cisco is becoming a bigger AI play. Article about AI infrastructure orders
• Positive Sentiment: The company also announced a quarterly dividend of $0.42 per share, which supports its appeal to income-focused investors. MarketBeat dividend note
• Neutral Sentiment: Cisco is cutting about 4,000 jobs as part of an AI-focused restructuring, with up to $1 billion in related charges; investors see this as a margin/efficiency move, but it also adds near-term execution risk. WSJ article

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. BNP Paribas Exane raised their target price on shares of Cisco Systems from $86.00 to $87.00 and gave the stock an “outperform” rating in a report on Thursday, February 12th. Rosenblatt Securities restated a “buy” rating and issued a $100.00 price target on shares of Cisco Systems in a research note on Thursday, February 12th. HSBC lifted their price objective on Cisco Systems from $74.00 to $77.00 and gave the stock a “hold” rating in a report on Friday, February 13th. Evercore increased their target price on Cisco Systems from $100.00 to $110.00 and gave the company an “outperform” rating in a report on Monday, May 4th. Finally, JPMorgan Chase & Co. raised their target price on Cisco Systems from $95.00 to $96.00 in a research report on Monday. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, Cisco Systems presently has an average rating of “Moderate Buy” and a consensus price target of $90.29.

Insider Activity

In related news, EVP Oliver Tuszik sold 3,132 shares of the firm’s stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $79.74, for a total value of $249,745.68. Following the transaction, the executive vice president directly owned 188,613 shares of the company’s stock, valued at approximately $15,040,000.62. This trade represents a 1.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Charles Robbins sold 19,545 shares of the business’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $76.00, for a total value of $1,485,420.00. Following the sale, the chief executive officer directly owned 671,095 shares of the company’s stock, valued at $51,003,220. This represents a 2.83% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 46,431 shares of company stock worth $3,574,820. Company insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Intesa Sanpaolo Wealth Management purchased a new stake in shares of Cisco Systems in the fourth quarter worth $25,000. MidAtlantic Capital Management Inc. purchased a new position in shares of Cisco Systems during the 4th quarter valued at $25,000. Networth Advisors LLC boosted its holdings in Cisco Systems by 276.4% in the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after buying an additional 246 shares during the period. Manning & Napier Advisors LLC increased its stake in Cisco Systems by 137.0% in the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after buying an additional 200 shares in the last quarter. Finally, Financial Life Planners bought a new stake in Cisco Systems during the first quarter valued at about $27,000. Institutional investors own 73.33% of the company’s stock.

Cisco Systems Trading Up 14.7%

The stock has a fifty day simple moving average of $83.93 and a 200 day simple moving average of $79.36. The firm has a market capitalization of $461.60 billion, a P/E ratio of 40.97, a PEG ratio of 3.73 and a beta of 0.92. The company has a quick ratio of 0.85, a current ratio of 0.96 and a debt-to-equity ratio of 0.45.

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.