Cisco Systems is scheduled to report its fiscal fourth-quarter 2025 earnings after market close Wednesday. Analysts expect a strong quarter, but some see risks ahead for the stock after its strong performance this year. According to LSEG, analysts expect Cisco, a major provider of networking and security solutions, to report earnings of 98 cents per share on revenue of about $14.6 billion. That would correspond to year-over-year earnings and revenue growth of 12.1% and 7.1%, respectively. Cisco shares are up more than 20% year to date, largely driven by enthusiasm pouring into artificial intelligence infrastructure and cybersecurity demand. For the quarter that ended April 26, Cisco posted an earnings and revenue beat and and issued guidance that also exceeded Wall Street’s expectations. The company said it received more than $1 billion in AI infrastructure orders year to date, surpassing its initial target for the fiscal year, and reported an uptick in revenue from networking and security products. Here’s what analysts are watching this time around: Barclays: Reiterated neutral rating, $66 price target Analyst Tim Long expects Cisco to post an in-line July quarter. “There has been broad-based across the business in FY25 with particular momentum in Wifi-7 and switching, both campus and DC. Order growth comps are harder this quarter, and we look for an update on product order growth ex Splunk as well as on webscale AI infrastructure orders. We do not assume a material EPS impact due to tariffs but await management commentary on what they’re seeing surrounding customer spend as the situation remains uncertain. However, the company has not experienced meaningful pull-in as a result and has a resilient supply chain to leverage. We continue to believe demand should persist in the near term and look for an updated FY26 guide.” Morgan Stanley: Kept overweight rating, $70 price target Analyst Meta Marshall’s price target implies shares could slip 1% from the latest close. Although she expects the company to beat estimates, she expects Cisco’s fiscal year 2026 top-line guidance will likely be conservative given an uncertain macroeconomic backdrop. “We expect upside to FQ4 results given strong spending data points, particularly as enterprises continue to modernize their infrastructure for AI,” Marshall wrote in an Aug. 5 note to clients. “While CSCO valuation has already re-rated, gap is currently 5.2x vs. historical 4.6x average, meaning there is still room for further expansion if AI data points or growth outlook surprise to the upside. More investors are becoming open to the potential for CSCO’s multiple to break past the historical trading range, something that we believe requires campus product cycle, cloud AI story, and Splunk/security.” Citi: Maintained buy rating, $71 price target Analyst Atif Malik believes eyes will be on Cisco’s fiscal year 2026 outlook. “We expect CSCO to benefit from an expanding AI networking TAM but see limited ~5% upside to our TP and recently lowered our ranking vs other Buy-rated networking coverage stocks as Street’s campus refresh expectations appear a bit elevated,” he said in an Aug. 5 note. Evercore ISI: Downgraded to in line from outperform, kept $72 price target The firm said Cisco’s AI thesis “will take time to play out” as the company competes with Broadcom for market share in networking, and as growth further materializes in the enterprise AI market, where Cisco is already a leader. “The upside has been driven by a cyclical recovery in their core enterprise networking business as well as a more compelling narrative around cloud & AI markets,” analyst Amit Daryanani said in a July 28 note. “Cisco’s AI narrative has gained some steam from disclosing AI order figures, and this has been a big factor in taking their P/E multiple to ~18x vs 5-year average of 14x. Other AI-levered names have seen more sizable multiple expansion, but we think Cisco will struggle to get credited as an AI winner without disclosing AI revenue numbers. Thus far, they have only disclosed AI orders and it does not look as though they plan to disclose revenue.” Wells Fargo: Maintained overweight rating, $75 price target Analyst Aaron Rakers is more bullish on Cisco’s stock than his Wall Street peers. Rakers’ price target implies the stock can gain 6.1%. “Expect upcoming (8/13) F4Q25 upside + commentary reinforcing our positive thesis w/ underlying positive enterprise spend trends supporting con’t positive view on campus upgrade cycle + materializing AI backlog monetization,” his Aug. 6 note reads. “Cisco’s visible participation in Sovereign AI build-outs should be considered an incremental growth driver in FY26+.”
