Technology company Cisco Systems (CSCO) is set to release its Q2 FY25 results on February 12. CSCO stock has gained over 29% over the past year, fueled by strong data center demand as companies upgrade infrastructure for multi-cloud environments, strategic acquisitions like Splunk, and positive market trends that have lifted the broader tech sector. Wall Street analysts anticipate the company will report earnings of $0.91 per share, reflecting a 5% year-over-year increase.
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Meanwhile, revenues are expected to rise by 8.5% from the same quarter last year, reaching $13.87 billion, according to data from the TipRanks Forecast page.
Analysts’ Views on CSCO Ahead of Q2 Results
Ahead of CSCO’s Q2 results, JPMorgan analyst Samik Chatterjee has increased his price target from $66 to $69 while maintaining a Buy rating.
The analyst sees Cisco’s full-year guidance as the main focus for its Q2 earnings call. Chatterjee sees rising demand for Campus Networking equipment as a key strength, but he contends that weaker federal spending could limit overall growth. In terms of top line numbers, he anticipates steady revenue growth in the coming quarters, projecting full-year revenue of $56.1 billion.
Similarly, another analyst, Meta Marshall of Morgan Stanley, is also optimistic about Cisco, citing strong data center spending and strategic acquisitions. The analyst expects Cisco’s revenue to slightly exceed forecasts, driven by improved networking demand. Marshall noted that though U.S. federal spending remains weak, rising data center investments and greater adoption of multi-cloud environments should provide overall support to the stock.
Options Traders Anticipate a 5.51% Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 5.51% move in either direction.
Is CSCO a Good Stock to Buy Now?
On TipRanks, CSCO is a Moderate Buy based on nine Buys, seven Holds, and zero Sell ratings assigned by Wall Street analysts in the past three months. The average Cisco Systems stock price target is $63.67, implying a slight upside potential of 1.37% from the current levels.
