Cisco Systems (CSCO) stock is trading lower Thursday even after the networking equipment specialist beat top- and bottom-line expectations for its fiscal 2025 first quarter and raised its full-year outlook.
In the three months ended October 26, Cisco's revenue decreased 5.6% year over year to $13.8 billion, pressured by a 28% decline in its Networking segment to $6.8 billion. Its earnings per share (EPS) were down 18% from the year-ago period to 91 cents.
"Cisco is off to a strong start to fiscal 2025," said CEO Chuck Robbins in a statement. "Our customers are investing in critical infrastructure to prepare for artificial intelligence (AI), and with the breadth of our portfolio, we are uniquely positioned to capitalize on this opportunity."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results beat analysts' expectations. Wall Street was anticipating revenue of $13.77 billion and earnings of 87 cents per share, according to CNBC.
Since its Q1 results came in at the high end or above its guidance range, Cisco raised its outlook for the full fiscal year. The company now expects to achieve revenue in the range of $55.3 billion to $56.3 billion and earnings per share between $3.60 to $3.66. This compares to its previous forecast for revenue in the range of $55 billion to $56.2 billion and EPS of $3.52 to $3.58.
"We are focused on solid execution and operating discipline while making strategic investments to drive innovation and growth," said Cisco Chief Financial Officer Scott Herren.
Is Cisco stock a buy, sell or hold?
Cisco Systems is up 17% for the year to date on a total return basis (price change plus dividends) and Wall Street is moderately bullish on the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for CSCO is $60.37, representing implied upside of roughly 5% to current levels. Meanwhile, the consensus recommendation is Buy.
Financial services firm Jefferies is one of those with a Buy rating on the Dow Jones stock. It also raised its price target on Cisco to $66 from $53 after earnings.
"Cisco reported solid results and guidance, bolstered by depleted customer inventory and positive AI commentary," wrote Jefferies analyst George Notter in a November 13 note. "Splunk was better than we expected. Order trends were strong – albeit on easy year-ago comparisons. Margins are looking good too as the company continues to manage costs tightly. We still think the risk/reward in the shares is tilted positively."
Related Content
- Kiplinger's Earnings Calendar for This Week
- Why Is Warren Buffett Selling So Much Stock?
- Best Dividend Stocks to Buy for Dependable Dividend Growth
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
I Need to Free Up $1,000 in My Monthly Budget, and I've Already Given Up Starbucks and Dining Out. What Else Can I Do?Here are some creative ways to save up to $1,000 a month, even if you feel like you've already made all of the obvious cuts.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have Today
Home Depot stock has been a buy-and-hold banger for truly long-term investors.
-
Eight Steps to Help Get You Through the Open Enrollment Jungle at WorkWondering how to survive open enrollment this year? Arm yourself with these tools to cut through the process and get the best workplace benefits for you.
-
Seven Moves for High-Net-Worth People to Make Before End of 2025, From a Financial PlannerIt's time to focus on how they can potentially reduce their taxes, align their finances with family goals and build their financial confidence for the new year.
-
I'm a Financial Planner: These Are the Seven Tiers of Retirement Well-BeingLet's apply Maslow's hierarchy of needs to financial planning to create a guide for ranking financial priorities.
-
Why More Americans Are Redefining Retirement, Just Like I DidRetirement readiness requires more than just money. You have a lot of decisions to make about what kind of life you want to live and how to make it happen.
-
3 Major Changes Investors Must Prepare for in 2026A possible stock market bubble. Trump accounts. Tokenized stocks. These are just three developments investors need to be aware of in the coming months.
-
A Compelling Case for Why Property Investing Reigns Supreme, From a Real Estate Investing ProInvestment data show real estate's superior risk-adjusted returns and unprecedented tax advantages through strategies like 1031 exchanges and opportunity zones.
-
Stocks Close Out Strong Month With Solid Amazon Earnings: Stock Market TodayAmazon lifted its spending forecast as its artificial intelligence (AI) initiatives create "a massive opportunity."
