What's Going On With Cisco Systems Stock?

Zinger Key Points
  • Cisco Systems beat Q1 revenue and earnings estimates but reported a 6% year-over-year revenue decline.
  • Despite strong cash flow and AI-driven opportunities, shares fell as investors reacted to declining product revenue.

Cisco Systems Inc CSCO shares have fallen 3% to $56.90 following last week’s release of its fiscal first-quarter 2025 results.

Despite surpassing Wall Street expectations for both revenue and earnings, the company reported a year-over-year revenue decline that raised investor concerns.

What Happened: Cisco reported quarterly revenue of $13.84 billion, narrowly topping analysts' forecasts of $13.77 billion, with adjusted earnings of 91 cents per share, exceeding the expected 87 cents.

This marked the tenth consecutive quarter the company has outperformed estimates. However, revenue dipped 6% from the prior year, as product revenue fell by 9%, offset slightly by a 6% increase in services revenue.

Cash flow from operations surged 54% year-over-year to $3.7 billion, and Cisco closed the quarter with $18.7 billion in cash and investments.

For the fiscal second quarter, Cisco projected revenue between $13.75 billion and $13.95 billion and adjusted earnings of 89 to 91 cents per share. Full-year revenue guidance was set at $55.3 billion to $56.3 billion, with adjusted earnings of $3.60 to $3.66 per share.

CEO Chuck Robbins meanwhile emphasized the company’s strategic position in AI-driven infrastructure investments. Despite the mixed sentiment, several analysts raised price targets on Cisco, with BofA Securities projecting the stock to reach $72.

Read Also: Grant Cardone Calls Himself A ‘Coward Investor,’ Puts His Money In ‘Real Assets’

How To Buy CSCO Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Cisco Systems’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, CSCO has a 52-week high of $59.38 and a 52-week low of $44.50.

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