Cisco Systems (NASDAQ:CSCO) Updates FY 2025 Earnings Guidance

Cisco Systems (NASDAQ:CSCO) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 3.680-3.740 for the period, compared to the consensus earnings per share estimate of 3.660. The company issued revenue guidance of $56.0 billion-$56.5 billion, compared to the consensus revenue estimate of $56.1 billion. Cisco Systems also updated its Q3 2025 guidance to 0.900-0.920 EPS.

Cisco Systems Price Performance

CSCO stock traded up $0.50 during mid-day trading on Friday, hitting $64.34. 6,732,251 shares of the stock were exchanged, compared to its average volume of 19,471,361. Cisco Systems has a 12 month low of $44.50 and a 12 month high of $66.50. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.88 and a quick ratio of 0.80. The business has a fifty day moving average price of $59.97 and a 200 day moving average price of $55.42. The stock has a market capitalization of $256.23 billion, a price-to-earnings ratio of 27.61, a PEG ratio of 4.63 and a beta of 0.84.

Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, February 12th. The network equipment provider reported $0.77 earnings per share for the quarter, missing analysts’ consensus estimates of $0.91 by ($0.14). Cisco Systems had a net margin of 17.73% and a return on equity of 25.70%. On average, sell-side analysts anticipate that Cisco Systems will post 2.97 EPS for the current year.

Cisco Systems Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 23rd. Stockholders of record on Thursday, April 3rd will be paid a $0.41 dividend. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.55%. The ex-dividend date is Thursday, April 3rd. This is a positive change from Cisco Systems’s previous quarterly dividend of $0.40. Cisco Systems’s payout ratio is 68.67%.

Cisco Systems announced that its board has authorized a share repurchase plan on Wednesday, February 12th that authorizes the company to repurchase $15.00 billion in shares. This repurchase authorization authorizes the network equipment provider to buy up to 6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

CSCO has been the subject of a number of recent research reports. Citigroup boosted their target price on Cisco Systems from $68.00 to $71.00 and gave the company a “buy” rating in a research note on Thursday. Wells Fargo & Company boosted their price target on Cisco Systems from $60.00 to $72.00 and gave the company an “equal weight” rating in a report on Thursday. UBS Group boosted their price target on Cisco Systems from $62.00 to $70.00 and gave the company a “neutral” rating in a report on Thursday. BNP Paribas upgraded Cisco Systems from a “neutral” rating to an “outperform” rating and set a $72.00 price target on the stock in a report on Tuesday, January 28th. Finally, JPMorgan Chase & Co. boosted their price target on Cisco Systems from $69.00 to $73.00 and gave the company an “overweight” rating in a report on Thursday. Seven equities research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, Cisco Systems has a consensus rating of “Moderate Buy” and an average price target of $66.53.

Insider Buying and Selling

In related news, EVP Thimaya K. Subaiya sold 21,230 shares of the company’s stock in a transaction that occurred on Wednesday, November 20th. The stock was sold at an average price of $57.07, for a total value of $1,211,596.10. Following the sale, the executive vice president now owns 213,834 shares in the company, valued at $12,203,506.38. This represents a 9.03 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Maria Victoria Wong sold 586 shares of the company’s stock in a transaction that occurred on Thursday, December 12th. The stock was sold at an average price of $58.69, for a total value of $34,392.34. Following the completion of the sale, the senior vice president now owns 50,767 shares in the company, valued at $2,979,515.23. The trade was a 1.14 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 37,239 shares of company stock worth $2,166,612 in the last 90 days. Insiders own 0.01% of the company’s stock.

About Cisco Systems

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.