Cisco Systems(US:CSCO) 美股研究社·2025-05-15 11:02Core Viewpoint - Cisco is expected to report earnings of $0.92 per share and revenue of $14.05 billion for Q3 2025, reflecting year-over-year growth of 5% and 11% respectively [1][4]. Financial Performance - Cisco's total return rate has declined by approximately 500 basis points relative to the S&P 500 index over the past 25 years [4]. - The company has made positive revisions to its earnings per share forecasts for FY 2025 and FY 2026, with estimates showing an average annual growth rate of 3% in revenue since 2010 [10][11]. - The revenue estimates for FY 2025 and FY 2026 have also been revised upwards, indicating a positive growth trajectory [7]. Strategic Moves - Cisco acquired Splunk for $28 billion, which is seen as a strategic entry into the cybersecurity market, a rapidly growing sector in technology [4]. - The integration of Splunk is expected to take at least eight quarters, and it is anticipated that security revenue will increase from 6-7% to 15% of total revenue [9]. Market Position - Cisco's stock price has not approached its historical high of $82 since April 2000, and the company has faced challenges in delivering substantial shareholder value through numerous smaller acquisitions [8]. - The company has lagged behind the S&P 500 index, with a modest increase of 10% in stock price from July 2015 to May 2025, trailing by only 105 basis points [8]. Future Outlook - The key question remains whether Splunk will yield meaningful results for Cisco, as the company transitions from a hardware-centric model to potentially a software-oriented one [9][10]. - Cisco's average earnings growth rate has been 7% per year, but significant revenue growth is needed for the stock to regain market relevance [11].