Cisco’s strong earnings streak faces test amid softer outlook

Cisco Systems (NASDAQ:CSCO) will report Q4 results on Wednesday, August 13, after the market closes. Analysts expect EPS of $0.98 (+12.6% Y/Y) on revenue of $14.62B (+7.2% Y/Y).

The technology conglomerate has a perfect track record over the past two years, beating both EPS and revenue estimates in every quarter. In the past three months, analysts have raised EPS forecasts 15 times (with just 1 cut) and revenue forecasts 12 times (3 cuts).

Investors will be watching for updates on Cisco’s AI-driven growth strategy, which has fueled renewed optimism.

Cisco’s Q3 revenue rose 11.4% to $14.15 billion, beating expectations by $90M, driven by growth across all segments. Product orders were up 20%, while AI infrastructure orders surpassed $600M.

However, some analysts warn Cisco’s Q4 guidance signals slower growth, with revenue projected at $14.5–$14.7B and GAAP EPS at $0.62–$0.67, implying little sequential gain. FY25 revenue guidance of $56.5–$56.7B suggests about 5% growth based on midpoint figures — below the acceleration some expected.

Seeking Alpha contributor Rick Orford says, “Despite near-term guidance for slower growth, CSCO stock’s valuation is attractive, the dividend profile is solid, and its core business remains resilient.”

“AI infrastructure momentum and strategic Middle East partnerships position Cisco for long-term growth and reduced revenue concentration risk,” Orford added. Cisco hit its $1 billion annual target for AI infrastructure orders in its fiscal Q3 ‘25 – one full quarter ahead of schedule.

In terms of YTD performance, Cisco (NASDAQ:CSCO) has achieved a rise of 19.5%, outperforming the broader market’s 8.9% growth.