What's Next: Cisco Systems's Earnings Preview

Cisco Systems CSCO will release its quarterly earnings report on Wednesday, 2025-05-14. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Cisco Systems to report an earnings per share (EPS) of $0.92.

Investors in Cisco Systems are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.03, leading to a 2.09% increase in the share price the following trading session.

Here's a look at Cisco Systems's past performance and the resulting price change:

Stock Performance

Shares of Cisco Systems were trading at $61.67 as of May 12. Over the last 52-week period, shares are up 24.57%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Cisco Systems

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Cisco Systems.

Analysts have given Cisco Systems a total of 14 ratings, with the consensus rating being Neutral. The average one-year price target is $68.79, indicating a potential 11.55% upside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of Arista Networks, Motorola Solutions and Ubiquiti, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Arista Networks, with an average 1-year price target of $103.75, suggesting a potential 68.23% upside.
• Analysts currently favor an Outperform trajectory for Motorola Solutions, with an average 1-year price target of $514.5, suggesting a potential 734.28% upside.
• Analysts currently favor an Buy trajectory for Ubiquiti, with an average 1-year price target of $375.67, suggesting a potential 509.16% upside.

Peers Comparative Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Arista Networks, Motorola Solutions and Ubiquiti, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Cisco Systems ranks in the middle for revenue growth among its peers. It is at the bottom for gross profit. For return on equity, Cisco Systems is at the bottom compared to its peers.

Discovering Cisco Systems: A Closer Look

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software such as firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employs 80,000 people and sells its products globally.

Cisco Systems: A Financial Overview

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Cisco Systems displayed positive results in 3 months. As of 31 January, 2025, the company achieved a solid revenue growth rate of approximately 9.38%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Cisco Systems's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.35% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Cisco Systems's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.35% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Cisco Systems's ROA stands out, surpassing industry averages. With an impressive ROA of 1.98%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Cisco Systems's debt-to-equity ratio is below the industry average. With a ratio of 0.68, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Cisco Systems visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.