Cisco Systems Anticipates Q3 Earnings Growth Amid Positive Market Trends

With a market cap of $217 billion, Cisco Systems, Inc. (CSCO) is a key player in designing and selling Internet Protocol-based networking products for the communications and information technology sectors. Headquartered in San Jose, California, the company operates across the Americas, Europe, EMEA, and the Indo-Pacific.

Upcoming Earnings Announcement

On May 21, Cisco is set to release its Q3 2025 earnings report. Analysts predict the company will post adjusted earnings of $0.75 per share, which indicates a growth of 4.2% from the $0.72 per share reported in the same quarter last year. Notably, Cisco has exceeded Wall Street’s bottom-line estimates in each of the past four quarters.

Fiscal Year Projections

For fiscal 2025, forecasts suggest an adjusted EPS of $3.07, reflecting a 1.6% decrease from the $3.12 reported in fiscal 2024. However, a rebound is anticipated in fiscal 2026, with earnings expected to grow by 5.9% year-over-year to $3.25 per share.

Stock Performance

Cisco’s stock has climbed 18.8% over the past 52 weeks, significantly outperforming the S&P 500 Index, which gained 8.4% in the same time frame, as well as the Technology Select Sector SPDR Fund’s (XLK) 4.2% returns.

Recent Financial Highlights

Following the release of its Q2 2025 results on February 12, CSCO’s stock rose 2.1%. The company reported a revenue of $14 billion, marking a 9.4% increase compared to the previous year, with EMEA sales growing by 11% year-over-year. Revenue also exceeded forecasts of $13.9 billion. Adjusted EPS was reported at $0.94, an 8% increase from the prior year, along with AI Infrastructure orders exceeding $350 million.

Additionally, CSCO announced a 3% increase in its quarterly dividend, now at $0.41 per share. Looking forward to fiscal 2025, the company expects revenue to range between $56 billion and $56.5 billion, with adjusted EPS projected between $3.68 and $3.74.

Analysts’ Outlook

The consensus among analysts regarding CSCO’s stock remains cautiously optimistic, supporting a “Moderate Buy” rating overall. From the 20 analysts covering the stock, there are 10 “Strong Buys,” two “Moderate Buys,” and eight “Holds.” The average price target of $70.11 indicates a potential upside of 23.3% from current levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.