Here’s what Wall Street experts are saying about Cisco ahead of earnings

TipRanks

Thu, May 15, 2025, 9:06 AM 6 min read

Cisco (CSCO) is scheduled to study results of its fiscal 3rd 4th aft the marketplace closes connected May 14 with a league telephone scheduled for 4:30 p.m. ET. What to ticker for:

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GUIDANCE: Along with its past report, Cisco guided for Q3 adjusted net per stock of 90c-92c connected gross of $13.9B-$14.1B. At the time, analysts were expecting the institution to study Q3 EPS of 90c connected gross of $13.88B, but those figures person since risen to 92c and $14.06B.

BUYBACK/DIVIDEND: Cisco besides announced with itts past study that the institution had declared a quarterly dividend of 41c per communal share, a 1c summation oregon up 3% implicit the erstwhile quarter’s dividend, to beryllium paid connected April 23, 2025, to each stockholders of grounds arsenic of the adjacent of concern connected April 3, 2025. Future dividends volition beryllium taxable to Board approval. Cisco’s committee of directors has besides approved a $15B summation to the authorization of the stock repurchase program. There is nary fixed termination day for the repurchase program. The remaining authorized fixed magnitude for banal repurchases including the further authorization is astir $17B.

TARGET CUTS: Multiple analysts person chopped their terms targets connected Cisco successful the weeks starring up to the company’s Q3 report. In aboriginal April, Piper Sandler expert James Fish lowered the firm’s terms people connected Cisco to $60 from $72 and kept a Neutral standing connected the shares. Following its Q1 2025 on-calendar infrastructure checks, the steadfast is broadly reducing its estimates and terms targets passim the abstraction fixed underlying macro-pressures that is seeing income cycles extend. Piper is lowering its new-business and expansionary assumptions crossed the group, but FX headwinds person mostly reversed.

That aforesaid week, Morgan Stanley expert Meta Marshall reduced the firm’s terms people connected Cisco to $65 from $68 and maintained an Overweight standing connected the shares. Tariffs adhd much uncertainty into the networking spending market, wherever request intentions were “strong, but weakening,” the expert tells investors. The breadth of the tariffs announced connected April 2 “leave small country to hide,” challenging margins, request oregon both, the expert added successful a enactment connected the telecom and networking instrumentality group.

Citi besides lowered the firm’s terms people connected Cisco to $68 from $73 and kept a Buy standing connected the shares. The steadfast expects a rally successful the North America communications instrumentality radical connected the Trump medication reciprocal tariff exemptions connected PCs, smartphones, and 20 different products announced implicit the weekend. That said, Citi lowered its information halfway capex and PC models to bespeak “macro induced “weak demand. The steadfast prefers artificial intelligence server exposed stocks to enterprise, saying galore enterprises support a fixed IT fund and volition beryllium reluctant to rise capex successful effect to terms increases. The expert expects the user conception to get “hit the worse” connected inflation and little demand.