ETFs in Focus as Cisco Beats on Q4 Earnings, Offers Weak Outlook

Core Insights - Cisco Systems reported strong fourth-quarter fiscal 2025 results, exceeding both earnings and revenue estimates, but shares fell approximately 2% in after-market trading due to weak future forecasts [1][3]. Financial Performance - Earnings per share were 99 cents, surpassing the Zacks Consensus Estimate of 97 cents, and reflecting a 14% increase year-over-year [3]. - Revenues increased by 8% year-over-year to $14.67 billion, exceeding the consensus estimate of $14.60 billion [3]. - Product revenues rose by 10% to $10.9 billion, while services revenues remained flat at $3.78 billion [4]. Future Outlook - For fiscal 2026, Cisco anticipates revenues between $59 billion and $60 billion and earnings per share between $4.00 and $4.06, with the Zacks Consensus Estimate at $59.18 billion for revenues and $3.79 for earnings per share [5]. - In the ongoing fiscal first quarter, Cisco projects revenues between $14.65 billion and $14.85 billion and earnings in the range of 97 to 99 cents per share, with the Zacks Consensus Estimate at $14.56 billion for revenues and 97 cents for earnings per share [5]. Industry ETFs - iShares U.S. Telecommunications ETF (IYZ) has a 19.4% allocation to Cisco, with total assets under management (AUM) of $511.9 million [6]. - First Trust Nasdaq Cybersecurity ETF (CIBR) holds 9% of Cisco, with an AUM of $9.7 billion [7]. - iShares Edge MSCI USA Value Factor ETF (VLUE) features Cisco at 7.1%, with an AUM of $6.7 billion [8]. - Pacer Data and Digital Revolution ETF (TRFK) includes Cisco at 8% of its assets, with an AUM of $104.8 million [10]. - Amplify Cybersecurity ETF (HACK) allocates 6.6% to Cisco, with an AUM of $2.2 billion [11].