Cisco Systems (NASDAQ:CSCO) Releases FY 2027 Earnings Guidance

Cisco Systems (NASDAQ:CSCO) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 5.050-5.110 for the period, compared to the consensus earnings per share estimate of 4.640. The company issued revenue guidance of $72.2 billion-$73.4 billion, compared to the consensus revenue estimate of $68.6 billion. Cisco Systems also updated its Q1 2027 guidance to 1.320-1.340 EPS.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. HSBC upgraded shares of Cisco Systems from a “hold” rating to a “buy” rating and upped their target price for the stock from $77.00 to $137.00 in a research report on Friday, May 15th. JPMorgan Chase & Co. boosted their price target on shares of Cisco Systems from $95.00 to $96.00 in a research note on Monday, May 11th. KeyCorp raised their price objective on Cisco Systems from $125.00 to $130.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Citic Securities lifted their target price on Cisco Systems from $90.00 to $130.00 in a report on Friday, May 15th. Finally, Piper Sandler lifted their target price on Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $123.14.

Cisco Systems Trading Up 2.9%

CSCO stock opened at $123.88 on Thursday. The firm has a fifty day moving average price of $117.56 and a 200 day moving average price of $98.72. Cisco Systems has a fifty-two week low of $65.75 and a fifty-two week high of $130.37. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92. The firm has a market cap of $488.27 billion, a PE ratio of 40.22, a price-to-earnings-growth ratio of 2.71 and a beta of 1.02.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating 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 company had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same quarter in the prior year, the firm earned $0.99 earnings per share. Cisco Systems’s revenue was up 17.6% on a year-over-year basis. 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. Sell-side analysts anticipate that Cisco Systems will post 3.54 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Friday, October 2nd. Cisco Systems’s dividend payout ratio is currently 54.55%.

Insider Transactions at Cisco Systems

In related news, EVP Oliver Tuszik sold 2,761 shares of Cisco Systems stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $114.61, for a total value of $316,438.21. Following the completion of the transaction, the executive vice president owned 180,877 shares in the company, valued at approximately $20,730,312.97. This trade represents a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 that occurred on Friday, May 15th. The shares were sold at an average price of $117.28, for a total value of $840,780.32. Following the sale, the insider owned 246,737 shares in the company, valued at approximately $28,937,315.36. This trade represents a 2.82% decrease in their ownership of the stock. 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 47,650 shares of company stock worth $5,668,823 in the last quarter. Company insiders own 0.01% of the company’s stock.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: AI-driven demand remains a major growth catalyst. Cisco reported record fourth-quarter revenue of approximately $17.3 billion, up 18% year over year, while networking product orders increased 40%. AI infrastructure orders totaled $4 billion in the quarter and $9.3 billion for fiscal 2026, with management expecting approximately $7.5 billion of AI infrastructure revenue in fiscal 2027. Cisco fiscal 2026 earnings release
• Positive Sentiment: Results and forward guidance exceeded consensus. Adjusted earnings of $1.22 per share topped the $1.17 estimate, and revenue of $17.25 billion exceeded the $16.84 billion forecast. Cisco guided for fiscal first-quarter revenue of $18.0 billion to $18.2 billion and adjusted EPS of $1.32 to $1.34, well above analysts’ expectations. Fiscal 2027 revenue guidance of $72.2 billion to $73.4 billion and adjusted EPS guidance of $5.05 to $5.11 also surpassed consensus. Reuters Cisco forecast article
• Neutral Sentiment: Quarterly dividend maintained. Cisco declared a $0.42-per-share dividend, payable October 21 to shareholders of record October 2, representing an indicated yield of approximately 1.4%.
• Negative Sentiment: Gross-margin pressure is the key concern. Analysts acknowledged the record results but said squeezed gross margins could limit the benefit of stronger sales. Investors may also be concerned that AI networking growth requires substantial investment and could carry lower margins than Cisco’s traditional business. MarketWatch margin concerns article
• Negative Sentiment: The earnings beat may not have cleared an elevated bar. With CSCO trading near its 52-week high and at roughly 40 times earnings, investors appear to be demanding accelerating growth rather than merely strong results. The pullback reflects profit-taking and skepticism that the AI-driven “supercycle” can justify the stock’s premium valuation over the longer term. Barron’s Cisco AI demand article

Institutional Trading of Cisco Systems

Institutional investors have recently bought and sold shares of the stock. Intesa Sanpaolo Wealth Management purchased a new stake in shares of Cisco Systems in the fourth quarter valued at $25,000. Jessup Wealth Management Inc purchased a new position in shares of Cisco Systems during the 4th quarter worth about $29,000. Swiss RE Ltd. purchased a new position in shares of Cisco Systems during the 4th quarter worth about $35,000. Birchwood Financial Partners Inc. bought a new position in Cisco Systems during the 4th quarter valued at about $49,000. Finally, Quattro Advisors LLC purchased a new stake in Cisco Systems in the 4th quarter worth about $49,000. 73.33% of the stock is currently 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.