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San Jose, California-based Cisco Systems, Inc. (CSCO) designs, manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry. With a market cap of $245.5 billion, the company offers enterprise network security, software development, data collaboration, cloud computing, and other related services. The technology giant is expected to announce its fiscal second-quarter earnings for 2025 on Wednesday, Feb. 12.
Ahead of the event, analysts expect CSCO to report a profit of $0.74 per share on a diluted basis, up 2.8% from $0.72 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect CSCO to report EPS of $2.97, down 4.8% from $3.12 in fiscal 2024. However, its EPS is expected to rise 6.7% year over year to $3.17 in fiscal 2026.
CSCO stock has underperformed the S&P 500’s ($SPX) 25.8% gains over the past 52 weeks, with shares up 20.2% during this period. However, it outperformed the Technology Select Sector SPDR Fund’s (XLK) 19.8% gains over the same time frame.
CSCO has faced challenges, including a decrease in networking revenues, hesitant capital spending due to economic uncertainty, and rising competition from industry rivals. The company has also struggled with slow demand from telecommunications and cable service providers, along with excess inventory, which has impacted investor confidence.
On Nov. 13, CSCO shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $0.91 beat Wall Street expectations of $0.87. The company’s revenue was $13.84 billion, topping Wall Street forecasts of $13.76 billion. CSCO expects full-year adjusted EPS in the range of $3.60 to $3.66, and expects revenue to be between $55.3 billion and $56.3 billion.
Analysts’ consensus opinion on CSCO stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, eight advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 11 give a “Hold.” CSCO’s average analyst price target is $63.89, indicating a potential upside of 2.7% from the current levels.
