Cisco Systems Earnings Preview: Will AI Help The Company Grow?

Core Viewpoint - Cisco Systems Inc. is expected to report earnings with a gain of $0.98/share on $14.61 billion in revenue, while the Whisper number suggests a gain of $1.01/share, indicating market anticipation for strong performance [5]. Group 1: Earnings and Financial Performance - The company has shown steady earnings growth over the past few years, with earnings of $3.21 in 2020, $3.22 in 2021, $3.36 in 2022, and $3.89 in 2023. However, earnings are projected to decline to $3.73 in 2024, with a recovery expected to $3.79 in 2025 and $4.01 in 2026 [6]. - Cisco's current price-to-earnings ratio stands at 19, which is 0.8 times that of the S&P 500, suggesting a relatively attractive valuation compared to the broader market [6]. Group 2: Stock Performance and Technical Analysis - The stock recently reached a multi-decade high and is trading above its 21, 50, and 200-day moving averages, indicating strong technical performance. Investors are keenly watching for potential price movements following the earnings report [7]. Group 3: Company Background and Offerings - Cisco Systems, founded in 1984, has evolved into a leader in digital networking and communications technology, providing a wide range of products and services that form the backbone of the modern Internet [8][9]. - The company's offerings include networking hardware, software-defined networking, wireless technologies, security solutions, and collaboration platforms, which support businesses in creating secure and robust networks [10][11]. - Cisco's solutions cater to various sectors, including enterprises, governments, and service providers, with a focus on connectivity, security, and collaboration [12][13].