Cisco Shares Are Dropping Today: What's Going On?

Cisco Systems, Inc. CSCO shares are trading lower Thursday following the release of the networking equipment company’s first-quarter fiscal 2025 results. Here’s what you need to know.

What To Know: Cisco reported revenue of $13.84 billion for the quarter, beating analyst estimates of $13.77 billion. Adjusted earnings per share came in at 91 cents, exceeding the expected 87 cents per share, according to Benzinga Pro. This marks the tenth consecutive quarter that Cisco has topped estimates for revenue and earnings.

Although Cisco beat analyst expectations, total revenue fell 6% year-over-year as product revenue declined 9%, and services revenue increased 6%. The company generated $3.7 billion in cash flow from operations, a 54% increase compared to the same quarter last year, and ended the period with $18.7 billion in cash and investments.

Looking ahead, Cisco anticipates fiscal second-quarter revenue between $13.75 billion and $13.95 billion, and adjusted earnings per share in the range of 89 cents to 91 cents. The company projects full-year 2025 revenue between $55.3 billion and $56.3 billion, and full-year adjusted earnings between $3.60 and $3.66 per share.

"Cisco is off to a strong start to fiscal 2025. Our customers are investing in critical infrastructure to prepare for AI, and with the breadth of our portfolio, we are uniquely positioned to capitalize on this opportunity," said Chuck Robbins, chair and CEO of Cisco.

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Following the earnings report, multiple analysts raised price targets on Cisco stock.

• Piper Sandler maintained a Neutral and raised the price target from $52 to $57.

• Morgan Stanley maintained an Overweight and raised the price target from $58 to $62

• Barclays maintained an Equal-Weight and raised the price target from $49 to $56.

• Wells Fargo maintained an Equal-Weight and raises the price target from $57 to $60.

• BofA Securities maintained a Buy and raised the price target from $60 to $72.

CSCO Price Action: Cisco shares were down 2.14% at $57.90 at the time of writing, according to Benzinga Pro.

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