Cisco Systems, Inc. (NASDAQ:CSCO) Surpasses Earnings and Revenue Estimates

• Morgan Stanley has maintained a "Hold" rating for Cisco Systems (NASDAQ:CSCO), with the stock priced at approximately $63.30, amidst strategic acquisitions and partnerships.
• Cisco reported a 4% increase in EPS to $0.96 and a 1% revenue upside surprise, indicating strong financial health and potential for future dividend growth.
• The company's strategic partnerships and involvement in the "UAE Stargate" AI data center project highlight its commitment to innovation and long-term growth.

Cisco Systems (NASDAQ:CSCO) is a leading technology company known for its networking hardware, software, and telecommunications equipment. On May 21, 2025, Morgan Stanley maintained its "Hold" rating for Cisco, with the stock priced at approximately $63.30. This decision comes amidst various developments within the company, including strategic acquisitions and partnerships.

Cisco recently reported a 4% increase in earnings per share (EPS), achieving $0.96 compared to the estimated $0.92. This performance, alongside a 1% revenue upside surprise, highlights the company's strong financial health. The acquisition of Splunk is a significant move for Cisco, expected to expand its security division and drive future growth.

Cisco's strategic partnerships with companies like NVIDIA and HUMAIN are positioning it for success in AI, security, and quantum computing. These collaborations, along with robust stock buybacks and secure dividends, are enhancing shareholder returns. Cisco's strong balance sheet suggests potential for future dividend growth, making it an attractive option for investors.

The company's involvement in the "UAE Stargate" AI data center project, alongside Nvidia and OpenAI, underscores its commitment to innovation. This ambitious project, featuring a 5-gigawatt capacity, highlights Cisco's role in advancing AI infrastructure. Such initiatives are likely to bolster Cisco's market position and drive long-term growth.

Despite a current stock price of $63.12, slightly down by 0.47%, Cisco's estimated value ranges between $70 and $75, according to an internal model. This suggests that the stock is not significantly undervalued. However, Morningstar values Cisco in the mid-$50s, indicating differing perspectives on its fair value.

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading player in the computer networking sector, known for its innovative networking hardware, software, and telecommunications equipment. The company competes with other industry players like Digi International (DGII).

Both Cisco and Digi are currently rated with a Zacks Rank of #2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions. On March 6, 2025, Piper Sandler updated its rating for Cisco to Neutral, maintaining a hold action. At that time, the stock price was $63.10.

Currently, the stock price is $63.05, reflecting a slight decrease of 1.42% or $0.91. The stock has traded between $62.91 and $64.02 today, with a market capitalization of approximately $250.83 billion. Despite the Neutral rating from Piper Sandler, Cisco's Zacks Rank of #2 (Buy) suggests a strong value opportunity.

This rank targets companies with positive earnings estimate revision trends, indicating confidence in Cisco's improving earnings outlook. Investors may find this encouraging, as it reflects a favorable analyst sentiment towards the company's future performance. Cisco's stock has experienced fluctuations over the past year, reaching a high of $66.50 and a low of $44.50. The current trading volume is 10,405,959 shares on the NASDAQ exchange. This level of activity indicates significant investor interest, which could be attributed to the company's strong market position and positive earnings outlook.

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading player in the computer networking sector, known for its innovative networking hardware, software, and telecommunications equipment. The company competes with other industry players like Digi International (DGII).

Both Cisco and Digi are currently rated with a Zacks Rank of #2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions. On March 6, 2025, Piper Sandler updated its rating for Cisco to Neutral, maintaining a hold action. At that time, the stock price was $63.10.

Currently, the stock price is $63.05, reflecting a slight decrease of 1.42% or $0.91. The stock has traded between $62.91 and $64.02 today, with a market capitalization of approximately $250.83 billion. Despite the Neutral rating from Piper Sandler, Cisco's Zacks Rank of #2 (Buy) suggests a strong value opportunity.

This rank targets companies with positive earnings estimate revision trends, indicating confidence in Cisco's improving earnings outlook. Investors may find this encouraging, as it reflects a favorable analyst sentiment towards the company's future performance. Cisco's stock has experienced fluctuations over the past year, reaching a high of $66.50 and a low of $44.50. The current trading volume is 10,405,959 shares on the NASDAQ exchange. This level of activity indicates significant investor interest, which could be attributed to the company's strong market position and positive earnings outlook.

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading technology company known for its networking hardware, software, and telecommunications equipment. The company competes with other tech giants like Juniper Networks and Arista Networks. On November 13, 2024, Cisco reported earnings per share (EPS) of $0.91, surpassing the estimated $0.872, and revenue of approximately $13.84 billion, exceeding the estimated $13.78 billion.

Despite the positive earnings surprise, Cisco's EPS of $0.91 marks a decline from the $1.11 reported in the same quarter last year, as highlighted by Zacks Investment Research. This decrease in EPS indicates a year-over-year drop in profitability, which may concern investors. However, the company has raised its full-year forecast, suggesting confidence in its future performance.

Cisco's financial metrics provide further insights into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 24.66, indicating how much investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 4.37, reflecting the market's valuation of its revenue. These ratios help investors assess whether the stock is overvalued or undervalued compared to its earnings and sales.

The enterprise value to sales ratio of around 4.80 and the enterprise value to operating cash flow ratio of approximately 20.89 suggest how the market values Cisco in relation to its sales and cash flow. These metrics are crucial for understanding the company's financial health and operational efficiency. Additionally, Cisco's earnings yield of about 4.06% provides insight into the return on investment for shareholders.

Cisco's debt-to-equity ratio of approximately 0.71 indicates a moderate level of debt relative to shareholders' equity, which is a positive sign for financial stability. However, the current ratio of around 0.88 suggests that the company may face challenges in covering short-term liabilities with short-term assets. This could be a point of concern for investors assessing Cisco's liquidity position.

Cisco Systems (NASDAQ:CSCO) is a leading technology company known for its networking hardware, software, and telecommunications equipment. It plays a significant role in the tech industry, competing with companies like Juniper Networks and Arista Networks. On October 14, 2024, Ivan Feinseth from Tigress Financial set a price target of $78 for Cisco, suggesting a potential upside of 44.04% from its trading price of $54.15.

Bank of America Securities has recognized Cisco as a top pick for October, emphasizing its potential for passive income through dividends. As interest rates decline, dividend stocks like Cisco are expected to attract more investors. This highlights Cisco's reputation as a reliable choice for those seeking steady dividend income.

Currently, Cisco's stock price is $54.27, showing a slight increase of 0.02, or 0.0369%, from the previous session. The stock has traded between $53.79 and $54.40 today, with a 52-week range of $44.50 to $54.59. This indicates a stable performance, aligning with its market capitalization of approximately $216.58 billion.

The trading volume for Cisco today is 9,942,243 shares on the NASDAQ exchange. This level of activity reflects investor interest, possibly influenced by the positive outlook from analysts and its inclusion in Bank of America's top picks. As Cisco continues to be a strong contender in the tech industry, its stock remains a focal point for investors.

Cisco Systems (NASDAQ:CSCO) is a leading technology company known for its networking hardware, software, and telecommunications equipment. It plays a significant role in the tech industry, competing with companies like Juniper Networks and Arista Networks. On October 14, 2024, Ivan Feinseth from Tigress Financial set a price target of $78 for Cisco, suggesting a potential upside of 44.04% from its trading price of $54.15.

Bank of America Securities has recognized Cisco as a top pick for October, emphasizing its potential for passive income through dividends. As interest rates decline, dividend stocks like Cisco are expected to attract more investors. This highlights Cisco's reputation as a reliable choice for those seeking steady dividend income.

Currently, Cisco's stock price is $54.27, showing a slight increase of 0.02, or 0.0369%, from the previous session. The stock has traded between $53.79 and $54.40 today, with a 52-week range of $44.50 to $54.59. This indicates a stable performance, aligning with its market capitalization of approximately $216.58 billion.

The trading volume for Cisco today is 9,942,243 shares on the NASDAQ exchange. This level of activity reflects investor interest, possibly influenced by the positive outlook from analysts and its inclusion in Bank of America's top picks. As Cisco continues to be a strong contender in the tech industry, its stock remains a focal point for investors.