Copyright Benzinga
Technology giant Cisco Systems Inc (NASDAQ:CSCO) is likely to highlight new products and growth through AI-related launches when the company reports first-quarter financial results on Wednesday after market close. Here are the earnings estimates, what analysts are saying ahead of the report, and the key items to watch. Earnings Estimates: Analysts expect Cisco to report first-quarter revenue of $14.77 billion, up from $13.84 billion in last year's first quarter, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in eight of the last 10 quarters, including in the most recently reported fourth quarter. The estimated revenue would be the highest from Cisco in nine quarters, dating back to the fourth quarter of 2023. Analysts expect Cisco to report 98 cents in first-quarter earnings per share, up from 91 cents per share in last year's first quarter. The company has beaten analyst estimates in eight of the last 10 quarters, including in the most recently reported fourth quarter. Guidance from Cisco said the company expects first-quarter revenue to be between $14.65 billion and $14.85 billion. The company expects first-quarter earnings per share to be between 97 cents and 99 cents per share. Read Also: Top Stocks With Earnings This Week: Plug, Oklo, Circle And More What Analysts Are Saying: Cisco stock was upgraded by UBS analyst David Vogt ahead of the earnings report. The analyst upgraded the stock from Neutral to Buy and raised the price target from $74 to $88. Vogt said Cisco has a "multi-year growth cycle driven by AI infrastructure demand," as reported by Investing.com. The analyst said Cisco has locked in more than $2 billion in AI-related orders for the fiscal year. Vogt said Cisco is seeing strong demand from enterprise and sovereign customers with orders "approaching $1 billion." With the momentum, the analyst said Cisco has "sustained AI-fueled growth" for the current and next fiscal years. Key Items to Watch: Among the critical items to watch in Cisco's earnings report and management commentary will be details on some new product launches. The company recently unveiled some AI-related innovations including the Unified Edge platform. With the new products, Cisco can help businesses strengthen their cybersecurity and enable real-time decision-making. Cisco also launched the Cisco 8223 fixed Ethernet router, which could pose a more direct challenge to Broadcom in the networking sector. The router is meant to help meet demand for AI-related workloads. Cisco had a double beat in the fourth quarter with revenue and earnings per share both beating analyst estimates. Overall revenue was up 8% year-over-year in the fourth quarter, with product revenue up 10% year-over-year. Investors and analysts will be looking for continued growth from revenue and earnings per share and momentum to start the new fiscal year. Cisco CEO Chuck Robbins said the company's AI infrastructure orders in fiscal 2025 were more than double the company's original target. The company previously provided full-year fiscal 2026 revenue guidance of $59 billion to $60 billion and full-year earnings per share of $4.00 to $4.06. Analysts and investors will be closely monitoring whether the company updates its full-year guidance. CSCO Price Action: Cisco stock is down 0.9% to $71.46 on Tuesday versus a 52-week trading range of $52.11 to $74.84. Cisco stock is up 20.9% year-to-date in 2025. Read Next: Former Cisco CEO John Chambers Warns AI Market Surge Mirrors Dot-Com Bubble, Predicts Faster Job Displacement, Market Volatility Photo: Shutterstock
