Cisco Systems Q3 Preview: Analysts Anticipate 'Stabilizing Core Business Trends'

Cisco Systems Inc CSCO last month announced the launch of Hypershield for increasing the security of data centers and clouds.

The company is scheduled to report its fiscal third-quarter results on Wednesday. Here are some key analyst previews.

Piper Sandler On Cisco Systems

Analyst James Fish maintained a Neutral rating and price target of $51.

Cisco Systems' booking trends have returned to their longer-term average and checks suggest a beat of around 1% for the quarter, Fish said in a note. The company's Networking segment faces tough comps in the quarter, "offset slightly by easy Security and Collaboration compares," he added.

This will be the first quarter to include a contribution from the Splunk acquisition, which "should help Security and Observability materially accelerate on a reported basis," the analyst wrote. The latest reduction in guidance has created "a more attractive setup given revenue reaccelerating from the Splunk deal," he added.

Check out other analyst stock ratings.

JPMorgan On Cisco Systems

Analyst Samik Chatterjee reiterated a Neutral rating and price target of $53.

Revenue trends at Cisco Systems' Networking segment seem to be tracking in-line with "already lowered expectations" and could stabilize at the low end in the fiscal fourth quarter, Chatterjee said. This would limit the need for further downgrades to expectations, despite trends tracking below seasonal, he added.

Order declines in "high-single-digit percentages or higher" on a year-on-year basis could dampen investor enthusiasm around a swift rebound, the analyst stated. Cisco Systems is unlikely to provide "some early visibility" into full-year 2025 expectations when it reports its quarterly earnings, he further wrote.

CSCO Price Action: Shares of Cisco Systems were down 0.53% to $48.42 at the time of publication on Tuesday.

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