Anticipated Highlights in Cisco's Upcoming Quarterly Financial Update
Cisco Systems, Inc. (CSCO) is gearing up to release its fiscal Q4 earnings results on Wednesday, August 13. The California-based tech giant, with a market capitalization of $270.6 billion, designs, manufactures, and sells Internet Protocol-based networking and related products.
Analysts anticipate CSCO to report Q4 earnings per share (EPS) between $0.80 and $0.97, signalling around 11-13% year-over-year EPS growth. One consensus estimate forecasts $0.97 EPS for Q4 ending July 2025, reflecting an 11.5% year-over-year increase. Another prediction suggests $0.80 EPS, representing a 12.7% increase from the prior year quarter.
Cisco recently reported $0.80 EPS and $12.2 billion in revenue, beating consensus estimates of $0.74 EPS. Despite the strong performance, Cisco’s non-GAAP gross margins are expected to slightly contract in Q4, with guidance forecasting margins between 67.5% and 68.5%.
Analysts maintain a moderately bullish stance, with many rating the stock a “Moderate Buy” or “Strong Buy” and a consensus price target near $67.27 per share. Notably, Deutsche Bank analyst Matthew Nikman upgraded CSCO stock from "Buy" to "Hold" on June 16, and Nikman recently raised CSCO's price target from $65 to $73.
Cisco’s robust growth in AI infrastructure and networking sectors is tempered by some margin pressures in a competitive market environment. However, the company's continued AI-driven demand remains a positive factor, as highlighted by Nikman who cited "tailwinds from AI" as one of the positives for the upgrade.
For the current year, analysts anticipate CSCO to report EPS of $3.06, a 1.9% decrease from fiscal 2024's $3.12. Over the past 52 weeks, CSCO stock has surged 45.6%, outperforming the Technology Select Sector SPDR Fund's 14.5% surge and the S&P 500 Index's 13.4% uptick.
As always, it's important to remember that all information and data in this article are for informational purposes only. For more information, view the article's Disclosure Policy here. Kritika Sarmah did not have positions in any of the securities mentioned in the article.
Stay tuned for Wednesday's Q4 earnings report from Cisco Systems, Inc. (CSCO) to learn more about the company's performance and future outlook.
Tech analysts are keen to see how Cisco Systems, Inc.'s (CSCO) future outlook will be affected by its Q4 earnings report on Wednesday, August 13, considering the anticipated EPS growth and recent performance in the finance sector, such as AI infrastructure and networking. Despite some margin pressures in a competitive market environment, CSCO's continued AI-driven demand remains a positive factor, as demonstrated by Nikman's upgrade of CSCO stock and increased price target earlier this year.
