Networking giant Cisco Systems (CSCO) is scheduled to announce its results for the fourth quarter of Fiscal 2025 after the market closes on Wednesday, August 13. CSCO stock has risen 21% year-to-date, backed by optimism about artificial intelligence-led demand for infrastructure and cybersecurity solutions. Wall Street expects Cisco to report earnings per share (EPS) of $0.98, reflecting a 12.6% year-over-year growth. Revenue is estimated to rise 7.2% to $14.62 billion.
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Analysts’ Views Ahead of Cisco’s Q4 Earnings
Recently, Evercore analyst Amit Daryanani downgraded Cisco stock to Hold from Buy but maintained a price target of $72, citing limited near-term upside following a strong rally over the past 12 months. The 5-star analyst noted that the rally in CSCO stock was driven by a cyclical recovery in the company’s core enterprise networking business and a more compelling narrative around cloud and AI markets.
Daryanani pointed out the company’s limited AI disclosures. He contends that Cisco will struggle to get credited as an AI winner without disclosing AI revenue numbers. Daryanani added that so far, Cisco has only disclosed AI orders. He also noted challenges in the company’s Security and Observability segments, with legacy portions of these divisions reporting low single-digit growth for the past three quarters. Daryanani finds Cisco’s AI strategy “compelling,” with early signs of traction in hyperscale markets through the Silicon One offering and long-term potential in enterprise AI. That said, the analyst cautioned that gains in the enterprise space “may not become material until 2027+.” He also thinks that the CFO transition adds further uncertainty to FY26 guidance. Overall, Daryanani contends that while the management team has done a solid job, the upside is largely priced in.
Meanwhile, UBS analyst David Vogt increased the price target for Cisco stock to $74 from $70 and reiterated a Hold rating. The 4-star analyst expects increasing campus and data center demand to drive a Q4 earnings beat.
Here’s What Options Traders Anticipate Ahead of CSCO’s Q4 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 5.4% move in either direction in CSCO stock in reaction to Q4 results.
Is CSCO a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on Cisco Systems stock based on 10 Buys and nine Holds. The average CSCO stock price target of $73.33 indicates about 2.73% upside potential from current levels.
