Cisco Systems (NASDAQ:CSCO) Posts Earnings Results, Misses Estimates By $0.14 EPS

Cisco Systems (NASDAQ:CSCO) released its earnings results on Wednesday. The network equipment provider reported $0.77 EPS for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.14), Zacks reports. Cisco Systems had a net margin of 17.73% and a return on equity of 25.70%. Cisco Systems updated its Q3 2025 guidance to 0.900-0.920 EPS and its FY 2025 guidance to 3.680-3.740 EPS.

Cisco Systems Price Performance

Shares of NASDAQ:CSCO traded up $0.14 during mid-day trading on Friday, reaching $63.98. The stock had a trading volume of 3,822,847 shares, compared to its average volume of 19,364,762. The company has a current ratio of 0.88, a quick ratio of 0.80 and a debt-to-equity ratio of 0.43. The company has a market cap of $254.82 billion, a P/E ratio of 27.42, a price-to-earnings-growth ratio of 4.63 and a beta of 0.84. Cisco Systems has a 1 year low of $44.50 and a 1 year high of $66.50. The business’s 50 day moving average price is $59.97 and its 200 day moving average price is $55.42.

Cisco Systems Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 23rd. Investors of record on Thursday, April 3rd will be given a $0.41 dividend. This is an increase from Cisco Systems’s previous quarterly dividend of $0.40. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.56%. The ex-dividend date is Thursday, April 3rd. Cisco Systems’s payout ratio is currently 68.67%.

Cisco Systems announced that its board has approved a share repurchase program on Wednesday, February 12th that permits the company to repurchase $15.00 billion in outstanding shares. This repurchase authorization permits the network equipment provider to repurchase up to 6% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

CSCO has been the subject of a number of research analyst reports. BNP Paribas upgraded Cisco Systems from a “neutral” rating to an “outperform” rating and set a $72.00 target price for the company in a research note on Tuesday, January 28th. Rosenblatt Securities upgraded Cisco Systems from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $66.00 to $80.00 in a research note on Thursday. StockNews.com upgraded Cisco Systems from a “hold” rating to a “buy” rating in a research note on Thursday, November 14th. Barclays boosted their price target on Cisco Systems from $56.00 to $61.00 and gave the stock an “equal weight” rating in a research note on Thursday. Finally, Melius upgraded Cisco Systems from a “hold” rating to a “buy” rating and boosted their price target for the stock from $66.00 to $73.00 in a research note on Monday, January 6th. Seven analysts have rated the stock with a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $66.53.

Insider Buying and Selling

In other Cisco Systems news, EVP Thimaya K. Subaiya sold 3,042 shares of the company’s stock in a transaction that occurred on Thursday, December 12th. The stock was sold at an average price of $59.19, for a total transaction of $180,055.98. Following the sale, the executive vice president now directly owns 207,798 shares in the company, valued at $12,299,563.62. This represents a 1.44 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, SVP Maria Victoria Wong sold 586 shares of the company’s stock in a transaction that occurred on Thursday, December 12th. The shares were sold at an average price of $58.69, for a total value of $34,392.34. Following the transaction, the senior vice president now directly owns 50,767 shares in the company, valued at approximately $2,979,515.23. This represents a 1.14 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 37,239 shares of company stock worth $2,166,612. Corporate insiders own 0.01% of the company’s stock.

Cisco Systems Company Profile

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.