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

Cisco Systems (NASDAQ:CSCO - Get Free Report) announced its quarterly earnings data on Wednesday. The network equipment provider reported $0.77 earnings per share (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 Cisco Systems stock traded up $1.03 on Friday, hitting $64.87. The company's stock had a trading volume of 23,689,653 shares, compared to its average volume of 18,137,774. Cisco Systems has a 52-week low of $44.50 and a 52-week high of $66.50. The company has a quick ratio of 0.80, a current ratio of 0.88 and a debt-to-equity ratio of 0.43. The firm has a fifty day moving average price of $60.07 and a 200-day moving average price of $55.54. The company has a market capitalization of $258.36 billion, a P/E ratio of 27.84, a price-to-earnings-growth ratio of 4.63 and a beta of 0.84.

Cisco Systems Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 23rd. Shareholders of record on Thursday, April 3rd will be given a dividend of $0.41 per share. This is a positive change from Cisco Systems's previous quarterly dividend of $0.40. This represents a $1.64 annualized dividend and a dividend yield of 2.53%. The ex-dividend date of this dividend is Thursday, April 3rd. Cisco Systems's payout ratio is presently 68.67%.

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

Analysts Set New Price Targets

A number of research firms have commented on CSCO. Wells Fargo & Company upped their target price on shares of Cisco Systems from $60.00 to $72.00 and gave the company an "equal weight" rating in a research report on Thursday. Melius Research upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research note on Monday, January 6th. UBS Group increased their price target on shares of Cisco Systems from $62.00 to $70.00 and gave the company a "neutral" rating in a research note on Thursday. Rosenblatt Securities upgraded shares of Cisco Systems from a "neutral" rating to a "buy" rating and increased their price target for the company from $66.00 to $80.00 in a research note on Thursday. Finally, BNP Paribas raised shares of Cisco Systems from a "neutral" rating to an "outperform" rating and set a $72.00 target price on the stock in a report on Tuesday, January 28th. Seven research analysts have rated the stock with a hold rating, thirteen have given a buy rating and three have issued a strong buy rating to the company's stock. Based on 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 other news, SVP Maria Victoria Wong sold 4,881 shares of the company's stock in a transaction dated Wednesday, November 27th. The shares were sold at an average price of $59.73, for a total transaction of $291,542.13. Following the completion of the transaction, the senior vice president now owns 51,931 shares of the company's stock, valued at $3,101,838.63. This represents a 8.59 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Thimaya K. Subaiya sold 21,230 shares of the company's stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $57.07, for a total transaction of $1,211,596.10. Following the transaction, the executive vice president now directly owns 213,834 shares of the company's stock, valued at approximately $12,203,506.38. This represents a 9.03 % 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 three months. 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.