Cisco Systems (CSCO) Beats Q1 Earnings and Revenue Estimates

Core Insights - Cisco Systems reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, and up from $0.91 per share a year ago, representing an earnings surprise of +2.04% [1] - The company achieved revenues of $14.88 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 0.71% and increasing from $13.84 billion year-over-year [2] - Cisco has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - Cisco's earnings surprise for the previous quarter was +2.06%, with actual earnings of $0.99 per share against an expected $0.97 [1] - The stock has appreciated approximately 21.1% since the beginning of the year, outperforming the S&P 500's gain of 16.4% [3] Future Outlook - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.99 on revenues of $14.65 billion, and for the current fiscal year, it is $4.04 on revenues of $59.59 billion [7] Industry Context - The Computer - Networking industry, to which Cisco belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]