Cisco Stock: Why Wall Street Is Bullish After Earnings

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."

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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."

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