Cisco Systems Inc (NASDAQ:CSCO) looks to keep momentum in place with shares at all-time highs when it reports third-quarter financials on Wednesday after market close.
Here are the earnings estimates, what experts are saying and key items to watch.
• Cisco Systems stock is at critical resistance. Why is CSCO stock breaking out?
Cisco Q3 Earnings Estimates
Analysts expect Cisco to report third-quarter revenue of $15.56 billion, up from $14.15 billion in last year's third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in 15 straight quarters.
The estimated revenue total would represent a new company record, surpassing the $15.35 billion reported in the second quarter.
Analysts expect Cisco to report third-quarter earnings per share of $1, up from 96 cents per share year-over-year.
The company has beaten analyst estimates for earnings per share in more than 20 straight quarters.
Previous guidance from Cisco calls for third-quarter revenue to be in a range of $15.4 billion to $15.6 billion and earnings per share to be in the range of $1.02 to $1.04.
What Experts Are Saying Ahead Of Q3 Results
Freedom Capital Markets Chief Market Strategist Jay Woods highlights what happened the last time Cisco reported quarterly financial results.
"Cisco Systems shares fell by -12.3% last quarter — its second worst quarterly reaction to earnings in over a decade — but has rebounded precipitously since rallying to new heights," Woods said in a weekly newsletter.
Woods said the drop in share price came with Cisco beating estimates for both revenue and earnings per share and showing AI-driven demand. The investor concern was margin compression due to rising memory costs, an item that overshadowed the double beat.
"This quarter, investors will be laser-focused on whether margins stabilize and if they can convert its growing AI order book into profitable revenue."
Woods said Cisco stock could be volatile, which comes with the stock being less volatile in recent years than in the dot-com era. Woods said the stock has an implied volatility of +/- 5.8% for earnings day.
Looking at the chart, Woods sees several breakouts with minor support around $90 or even lower at $82 if shares sell off, calling the second level "a great longer-term entry opportunity."
"When we back it out to its dot-com days, we see that parabolic rise and an over two-decade struggle to return to its frightening glory. Shares broke out in 2024 and haven't looked back."
Woods said the stock shows overbought conditions, but the "long-term path higher still looks phenomenal."
"Can it return to those parabolic ’90s like returns? We may soon see, but either way, the stock is back and slow and steady is doing just fine for those holding this gem patiently."
Here are some recent analyst ratings on Cisco stock and their price targets:
- Evercore ISI Group: Maintained Outperform rating, raised price target from $100 to $110
- JPMorgan: Maintained Overweight rating, raised price target from $95 to $96
- Truist Securities: Initiated with Buy rating, price target of $94
Key Items to Watch
Within the financials, key items to watch will be revenue, which could be a company record. Investors and analysts will also be watching margins given the memory pressure from last quarter.
AI will also be a key theme to see if new products and platforms are gaining momentum for Cisco.
Cisco raised its full-year revenue and earnings per share guidance after second-quarter results. Investors and analysts will be expecting another raise if the company beats estimates.
The earnings results this week come with Cisco CEO Chuck Robbins set to accompany President Donald Trump on his trip to China. The event could help Cisco gain new deals and strengthen its international relations, along with becoming a preferred company on U.S. deals.
Cisco Stock Price Action
Cisco stock is down 0.70% to $98.03 on Tuesday. Shares hit a new 52-week high of $99.93 during Tuesday's intraday trading session. Cisco stock is up 30.1% year-to-date in 2026.
Photo: MacroEcon/Shutterstock
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