Shares of Cisco Systems Inc (NASDAQ:CSCO) dropped in early trading on Friday, after the company reported its fiscal first-quarter results.
Here are some key analyst takeaways:
- Rosenblatt Securities analyst Mike Genovese reaffirmed a Buy rating, while slashing the price target from $165 to $140.
- JPMorgan analyst Joseph Cardoso reiterated an Overweight rating and price target of $150.
Check out other analyst stock ratings.
Rosenblatt Securities: Cisco Systems’ revenue grew 24% year-on-year to $18.5 billion and earnings grew 40% to $1.40 per share, topping the high end of the guidance range and representing the fastest growth in more than 15 years, Genovese said in a note. While gross margin of 65.6% was above the midpoint of guidance, the company reported a record operating margin of 37.8%, he added.
Management raised their fiscal 2027 guidance for revenue to $74.8-$75.8 billion and earnings to $5.47-$5.53 per share, from their prior projections of $72.2-$73.4 billion and $5.05-$5.11 per share, respectively, the analyst noted.
He stated, however, that order growth decelerated across the board, with growth slowing sequentially “in every customer market and in the Americas and [Europe, the Middle East and Africa], with [Asia Pacific, Japan, and China] the one exception.”
The price target has been cut to reflect “lower sector multiples and slower orders,” Genovese further said.
JPMorgan: Cisco Systems once again delivered a beat on revenue, operating margin and earnings, Cardoso said. Management raised their guidance for both the second quarter and fiscal 2027, taking them above expectations heading into the print, he added.
The full-year outlook upside was driven by “continued AI momentum, with orders expected to outpace revenue in FY27,” the analyst wrote. This drives backlog to expand, supporting the raise in Cisco Systems’ AI revenue target to $9 billion, representing 125% growth, he said.
CSCO Price Action: Shares of Cisco Systems had declined by 5.56% to $96.34 on Friday.
