Cisco Systems (CSCO) is set to post first quarter results on Wednesday, after markets close.
Wall Street expects the San Jose, California-based firm to post EPS of $0.98, implying a 7.7% rise during the quarter, while revenue is expected to rise nearly 7% to $14.78 billion.
Cisco has benefited from the artificial intelligence boom, which is helping drive demand for the company’s networking equipment. The company, in August, beat consensus for its fourth quarter results and gave a upbeat forecast for the current quarter.
Over the last two years, Cisco has beaten both revenue and EPS estimates 100% of the time. Investors will keep their eyes peeled on signs as to whether the stock could continue its current trajectory.
“The earnings multiple is on the high end for a slow-growth company and this suggests that market participants are anticipating strong results from the company’s Networking segment,” said Seeking Alpha analyst Vladimir Dimitrov.
He added that along with growth from data centers and security services, investors should also pay close attention to gross margins and any clues about their direction through the rest of FY 2026.
Earlier in the month, UBS analysts upgraded Cisco to Buy from Neutral due to its critical role in the buildout of artificial intelligence infrastructure.
“Enterprise and Sovereign demand is now ramping, with Enterprise orders approaching $1B, up sharply from a couple hundred million in the most recent quarter, positioning Cisco for sustained Al-fueled growth in FY26 and FY27,” noted UBS analyst David Vogt.
Seeking Alpha analysts and Seeking Alpha’s Quant ratings are cautious and rated the stock a Hold. In contrast, Wall Street analysts consider it a Buy.
Over the last three months, EPS estimates have seen 14 upward revisions, compared to two downward revisions. Revenue estimates have also seen 14 upward revisions versus two downward moves.
The stock has gained nearly 22%, outperforming the over 16% rise in the broader S&P 500 Index.