What You Need to Know Ahead of Cisco Systems' Earnings Release

Core Insights - Cisco Systems, Inc. is expected to announce its fiscal first-quarter earnings for 2026 soon, with a market cap of $279.2 billion and a focus on Internet Protocol-based networking and related services [1] Financial Performance - Analysts anticipate Cisco to report a profit of $0.80 per share on a diluted basis, reflecting a 6.7% increase from $0.75 per share in the same quarter last year [2] - For the full fiscal year, EPS is projected to be $3.32, an 8.1% increase from $3.07 in fiscal 2025, with further growth expected to $3.59 in fiscal 2027 [3] Stock Performance - Cisco's stock has increased by 26.2% over the past 52 weeks, outperforming the S&P 500 Index's 16.9% gains but underperforming the Technology Select Sector SPDR Fund's 28.1% gains during the same period [4] Business Strategy and Growth Drivers - The company's revenue growth is significantly driven by its transition to subscription-based revenues, which now account for over half of total revenue, aided by the acquisition of Splunk [5] - Cisco is integrating AI across its product offerings and experiencing strong demand for AI infrastructure solutions, with notable growth in its security business [5] - The partnership with NVIDIA Corporation is enhancing Cisco's AI-ready data center solutions, positioning the company for continued growth in AI and security sectors [5] Recent Earnings Report - In its recent Q4 results, Cisco reported an adjusted EPS of $0.99, exceeding Wall Street's expectations of $0.97, with revenue of $14.7 billion, surpassing the forecast of $14.6 billion [6] - The company projects full-year adjusted EPS between $4 and $4.06, with revenue expectations between $59 billion and $60 billion [6] Analyst Sentiment - The consensus opinion on Cisco stock is moderately bullish, with a "Moderate Buy" rating overall; 11 analysts recommend a "Strong Buy," 1 suggests a "Moderate Buy," and 12 give a "Hold" rating [7] - The average analyst price target for Cisco is $76.58, indicating a potential upside of 8.4% from current levels [7]