Cisco Systems (NASDAQ:CSCO) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Cisco Systems (NASDAQ:CSCO) announced its quarterly earnings data on Wednesday. The network equipment provider reported $1.04 earnings per share for the quarter, beating analysts’ consensus estimates of $1.02 by $0.02, FiscalAI reports. The firm had revenue of $15.35 billion during the quarter, compared to analysts’ expectations of $15.11 billion. Cisco Systems had a net margin of 18.38% and a return on equity of 27.29%. The business’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.94 earnings per share.

Here are the key takeaways from Cisco Systems’ conference call:

• Cisco reported a beat and momentum in Q2 with record revenue of $15.3B (+10% YoY) and non-GAAP EPS of $1.04 (+11%), raised dividend and continued $3B of capital returns reinforce management’s commitment to shareholder returns and its FY26 guidance.
• AI infrastructure is a major growth driver — Cisco took $2.1B of hyperscaler AI orders in Q2, now expects AI orders in excess of $5B and to recognize >$3B of hyperscaler AI revenue in FY26, and highlighted product momentum (1M Silicon One chips shipped, new G300 102.4Tb chip and optics).
• Non-GAAP gross margin declined ~120 bps (product gross margin down 130 bps) driven primarily by higher memory costs and unfavorable mix; management is raising prices and revising partner terms but flagged near-term margin pressure.
• Security revenue was down 4% as Splunk shifts from on‑prem to cloud (short-term revenue drag), yet new/refreshed security offerings are gaining traction with ~1,000 new customers in Q2 and 2.5M Secure Access users booked.

Cisco Systems Stock Down 0.9%

CSCO stock traded down $0.75 during trading on Wednesday, hitting $85.54. 34,126,280 shares of the company’s stock were exchanged, compared to its average volume of 22,151,523. The business has a 50-day moving average price of $77.75 and a two-hundred day moving average price of $72.90. The company has a current ratio of 0.93, a quick ratio of 0.83 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $337.98 billion, a price-to-earnings ratio of 32.16, a PEG ratio of 3.28 and a beta of 0.87. Cisco Systems has a 52-week low of $52.11 and a 52-week high of $88.18.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on CSCO shares. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cisco Systems in a research report on Tuesday, January 27th. UBS Group upped their price target on Cisco Systems from $88.00 to $90.00 and gave the stock a “buy” rating in a report on Thursday, November 13th. JPMorgan Chase & Co. increased their price target on Cisco Systems from $90.00 to $95.00 and gave the company an “overweight” rating in a research report on Monday. KeyCorp boosted their price objective on Cisco Systems from $77.00 to $87.00 and gave the stock an “overweight” rating in a research report on Thursday, November 13th. Finally, Argus raised their target price on shares of Cisco Systems from $80.00 to $100.00 in a report on Thursday, November 13th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $94.45.

Insider Activity at Cisco Systems

In related news, Director Michael D. Capellas sold 10,850 shares of Cisco Systems stock in a transaction on Friday, December 19th. The shares were sold at an average price of $77.13, for a total transaction of $836,860.50. Following the sale, the director directly owned 146,368 shares in the company, valued at $11,289,363.84. This trade represents a 6.90% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Kristina M. Johnson sold 13,481 shares of the company’s stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $77.13, for a total transaction of $1,039,789.53. Following the completion of the transaction, the director owned 61,630 shares of the company’s stock, valued at $4,753,521.90. This represents a 17.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,044,865 shares of company stock valued at $81,397,635 in the last quarter. Company insiders own 0.01% of the company’s stock.

Institutional Trading of Cisco Systems

A number of large investors have recently made changes to their positions in CSCO. Brighton Jones LLC increased its position in Cisco Systems by 49.5% in the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider’s stock valued at $4,392,000 after acquiring an additional 24,562 shares during the period. Revolve Wealth Partners LLC increased its holdings in shares of Cisco Systems by 37.0% in the fourth quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider’s stock valued at $542,000 after purchasing an additional 2,474 shares during the period. Sivia Capital Partners LLC raised its stake in shares of Cisco Systems by 7.5% during the second quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider’s stock worth $706,000 after purchasing an additional 712 shares during the last quarter. Schnieders Capital Management LLC. lifted its holdings in shares of Cisco Systems by 3.9% during the second quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider’s stock worth $969,000 after purchasing an additional 519 shares during the period. Finally, Marshall Wace LLP grew its position in Cisco Systems by 118.1% in the 2nd quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider’s stock valued at $6,289,000 after buying an additional 590,650 shares during the last quarter. 73.33% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Record revenue, AI demand and raised full‑year outlook: Cisco reported Q2 revenue of ~$15.3B (up ~10% YoY), highlighted $2.1B of AI infrastructure orders from hyperscalers, and raised FY26 revenue and EPS ranges — supportive for longer‑term growth expectations. CISCO REPORTS SECOND QUARTER EARNINGS
• Positive Sentiment: New AI networking silicon and systems: Cisco unveiled the Silicon One G300 and G300‑powered systems (N9000/8000) targeting AI data centers — a strategic product push into hyperscaler AI networking that can expand addressable market and margins over time. Cisco unveils new AI networking chip
• Positive Sentiment: Orders and margin strength: Management reported accelerating product orders (networking orders >20% YoY) and improved non‑GAAP margins — evidence demand is translating into higher‑quality revenue and pricing leverage. CISCO REPORTS SECOND QUARTER EARNINGS
• Neutral Sentiment: Reported beats but small and mixed: Cisco beat consensus on non‑GAAP EPS (~$1.04 vs ~$1.02) and revenue vs some estimates, but the beats were modest — results reinforce the business story but didn’t dramatically exceed expectations. Cisco Systems (CSCO) Tops Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Analyst upgrades and targets supportive but mixed: Several firms recently raised ratings/targets (median ~$90.5); this underpins investor conviction but doesn’t eliminate sensitivity to near‑term guidance. Cisco Systems (NASDAQ:CSCO) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says
• Negative Sentiment: Market sold off on “mediocre” near‑term outlook: Despite beats and AI commentary, investors reacted to guidance that was generally in‑line with, not above, elevated expectations — headlines noted a multi‑percent drop after the print. Cisco’s stock drops 7% on mediocre forecast even as earnings and revenue top estimates
• Negative Sentiment: GAAP vs non‑GAAP nuance, cash‑flow and insider selling flagged: Some reports highlighted lower GAAP EPS/cash‑from‑operations dynamics and extensive insider selling disclosures — items that can increase short‑term volatility and investor caution. Cisco Systems (CSCO) Releases Q2 2026 Earnings: Revenue Growth but EPS Miss
• Neutral Sentiment: Short‑interest reporting appears anomalous: recent short‑interest entries show 0 shares (data likely erroneous) and do not provide a reliable signal today.

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.