Shares of Cisco Systems (CSCO) are up 7% after the networking hardware maker reported financial results and forward guidance that surpassed Wall Street forecasts.
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For its Fiscal second quarter, Cisco reported earnings per share (EPS) of $0.94, which came in ahead of consensus estimates of $0.91. Revenue in the quarter of $13.99 billion beat the $13.87 billion that was forecast among analysts. The company’s sales were up 9% from a year earlier.
The latest results are a reversal for Cisco after the company’s revenue declined in each of the four previous quarters. Management attributed the positive results to orders for artificial intelligence (AI) infrastructure that exceeded $350 million during the period.
Look Ahead
In addition to its strong print, Cisco Systems offered bullish forward guidance, saying it now expects earnings per share (EPS) of $3.68 to $3.74 for the 2025 Fiscal year, with $56 billion to $56.50 billion in revenue. Analysts had been looking for $3.66 in earnings and $55.99 billion in sales from the company.
Cisco also highlighted that revenue from its networking division totaled $6.85 billion, greater than the $6.67 billion consensus estimate among analysts who cover the company. Additionally Cisco’s security unit contributed $2.11 billion to the latest quarterly results, a 117% increase from a year earlier thanks to the addition of Splunk, which it acquired in March 2024 for $27 billion.
CSCO stock has risen 30% over the last year.
Is CSCO Stock a Buy?
The stock of Cisco Systems has a consensus Moderate Buy rating among 16 Wall Street analysts. That rating is based on nine Buy and seven Hold recommendations issued in the last three months. The average CSCO price target of $63.67 implies 1.82% upside from current levels. These ratings are likely to change after these latest financial results.
