Cisco Systems (NASDAQ:CSCO) Updates FY 2026 Earnings Guidance

Cisco Systems (NASDAQ:CSCO) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 4.130-4.170 for the period, compared to the consensus earnings per share estimate of 3.800. The company issued revenue guidance of $61.2 billion-$61.7 billion, compared to the consensus revenue estimate of $60.7 billion. Cisco Systems also updated its Q3 2026 guidance to 1.020-1.040 EPS.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on CSCO shares. UBS Group lifted their target price on shares of Cisco Systems from $88.00 to $90.00 and gave the company a “buy” rating in a research report on Thursday, November 13th. Bank of America raised their target price on Cisco Systems from $85.00 to $95.00 and gave the stock a “buy” rating in a report on Thursday, November 13th. Barclays boosted their price objective on shares of Cisco Systems from $71.00 to $76.00 and gave the company an “equal weight” rating in a research report on Thursday, November 13th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cisco Systems in a research report on Tuesday, January 27th. Finally, Morgan Stanley lifted their price objective on shares of Cisco Systems from $82.00 to $91.00 and gave the stock an “overweight” rating in a research report on Wednesday, December 17th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $94.73.

Cisco Systems Stock Performance

CSCO traded down $8.30 during trading on Thursday, hitting $77.24. The company’s stock had a trading volume of 14,279,575 shares, compared to its average volume of 21,780,475. Cisco Systems has a one year low of $52.11 and a one year high of $88.18. The company has a quick ratio of 0.83, a current ratio of 0.93 and a debt-to-equity ratio of 0.46. The firm has a market cap of $305.18 billion, a PE ratio of 29.04, a P/E/G ratio of 3.26 and a beta of 0.87. The business’s 50 day simple moving average is $77.91 and its 200-day simple moving average is $72.99.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings data on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share for the quarter, beating analysts’ consensus estimates of $1.02 by $0.02. Cisco Systems had a return on equity of 27.29% and a net margin of 18.38%.The firm had revenue of $15.35 billion during the quarter, compared to analyst estimates of $15.11 billion. During the same quarter last year, the business posted $0.94 earnings per share. The business’s quarterly revenue was up 9.7% compared to the same quarter last year. As a group, sell-side analysts predict that Cisco Systems will post 3.04 EPS for the current fiscal year.

Cisco Systems Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 22nd. Stockholders of record on Thursday, April 2nd will be given a dividend of $0.42 per share. This is a boost from Cisco Systems’s previous quarterly dividend of $0.41. The ex-dividend date is Thursday, April 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.2%. Cisco Systems’s payout ratio is 61.65%.

Insider Transactions at Cisco Systems

In other Cisco Systems news, CEO Charles Robbins sold 281,860 shares of the stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $78.35, for a total transaction of $22,083,731.00. Following the completion of the transaction, the chief executive officer owned 820,887 shares of the company’s stock, valued at $64,316,496.45. This trade represents a 25.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Michael D. Capellas sold 16,150 shares of the business’s stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $77.28, for a total transaction of $1,248,072.00. Following the completion of the transaction, the director owned 157,218 shares of the company’s stock, valued at approximately $12,149,807.04. This trade represents a 9.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,044,865 shares of company stock worth $81,397,635 in the last three months. 0.01% of the stock is owned by corporate insiders.

More Cisco Systems News

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

• Positive Sentiment: Record Q2 revenue and beat on non‑GAAP EPS with raised full‑year guidance — Cisco reported ~$15.3B revenue and non‑GAAP EPS of $1.04, and raised FY26 revenue guidance to $61.2–$61.7B and non‑GAAP EPS to $4.13–$4.17, giving a clear demand signal (AI/hyperscaler strength). PR Newswire: Cisco Reports Second Quarter Earnings
• Positive Sentiment: New AI networking silicon — Cisco unveiled the Silicon One G300 (102.4Tbps) aimed at large AI clusters, positioning CSCO to capture infrastructure spending from hyperscalers and compete with Broadcom/Nvidia. This product announcement supports the revenue/AI narrative. InsiderMonkey: Silicon One G300 Announcement
• Positive Sentiment: Dividend rise — Cisco increased its quarterly dividend to $0.42 (2% raise), supporting the income-investor case and total‑return thesis. Press Release / Slide Deck
• Positive Sentiment: Analyst support — Rosenblatt reaffirmed a “buy” and $100 PT, reflecting continued analyst optimism and potential upside vs. current levels. Benzinga: Rosenblatt Rating
• Neutral Sentiment: Trade/tariff policy update — U.S. House moved to block tariffs on Canada; reduced trade-policy uncertainty could be modestly positive for tech supply chains but the direct impact on Cisco’s near-term results is unclear. YouTube: Canada Tariffs Override
• Negative Sentiment: Margin concerns from higher memory costs — Several outlets flagged that rising memory prices are pressuring gross margins; Cisco reported GAAP gross margin below some estimates and commentary on component cost pressure weighed on the stock. MSN: Memory Costs Pressure Margins
• Negative Sentiment: Mood mismatch — Despite beats and an upgraded full‑year outlook, investors reacted negatively to guidance that many saw as only in‑line (or conservative on margins), driving post‑close and premarket selling. Coverage notes and market commentary highlight the selloff. CNBC: Stock Drops on Forecast Reaction
• Negative Sentiment: Headline focus on gross‑margin metrics and cash‑flow/chip-costs — Media reports emphasizing below‑estimate gross margin and memory‑cost headwinds amplified selling despite top‑line momentum. MarketWatch: Investors Pan Earnings

Institutional Investors Weigh In On Cisco Systems

Several institutional investors have recently modified their holdings of the company. Brighton Jones LLC boosted its holdings in shares of Cisco Systems by 49.5% during the fourth 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 boosted its position in shares of Cisco Systems by 37.0% during the fourth quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider’s stock worth $542,000 after buying an additional 2,474 shares during the period. Schnieders Capital Management LLC. boosted its position in Cisco Systems by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider’s stock worth $969,000 after acquiring an additional 519 shares during the period. Sivia Capital Partners LLC increased its holdings 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 valued at $706,000 after purchasing an additional 712 shares during the period. Finally, Talisman Wealth Advisors LLC lifted its holdings in Cisco Systems by 2.5% in the second quarter. Talisman Wealth Advisors LLC now owns 6,289 shares of the network equipment provider’s stock worth $436,000 after purchasing an additional 155 shares during the period. Hedge funds and other institutional investors own 73.33% of the company’s stock.

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.