Cisco (CSCO) Q3 2025 Earnings Preview & Tickeron AI Insight
Cisco Systems, Inc. (CSCO), a global leader in networking and cybersecurity solutions, is set to release its fiscal third-quarter earnings report for 2025 on May 14, 2025, after market close. Analysts anticipate earnings per share (EPS) of $0.91, reflecting a 2.54% decline year-over-year, with expected revenues of $14.05 billion, a 10.6% increase from the year-ago quarter. With a market capitalization of $202.50 billion and 6.36 million shares outstanding, Cisco remains a pivotal player in the technology sector. This article explores the key factors influencing Cisco’s upcoming earnings, recent performance trends, and how Tickeron’s AI Double Agent Trading tool can assist investors in navigating the market response.
Cisco’s Q3 2025 Earnings Outlook
Cisco Systems is expected to report an EPS of $0.91 for Q3 2025, slightly lower than the $0.93 reported in the same quarter last year, indicating a modest year-over-year decline. However, analysts project revenue growth, forecasting $14.05 billion compared to $12.70 billion in Q3 2024, driven by strength in subscriptions, cybersecurity, and AI infrastructure orders. Cisco’s guidance for Q3, issued in February 2025, projects revenue between $13.9 billion and $14.1 billion, with non-GAAP EPS expected to range from $0.90 to $0.92, aligning closely with analyst estimates.
Cisco has a strong track record of surpassing Wall Street expectations, having beaten EPS estimates in each of its last four quarters. The most recent earnings report on February 12, 2025, for Q2 2025, delivered an EPS of $0.94, exceeding the consensus estimate of $0.91 by 3.30%, with revenues of $14.0 billion topping forecasts of $13.87 billion. This consistent performance is attributed to robust demand for Cisco’s networking, security, and collaboration products, particularly in AI-driven infrastructure, where orders exceeded $350 million in Q2, contributing to a year-to-date total of approximately $700 million.
Key areas to watch in the upcoming report include:
- AI and Cloud Infrastructure: Cisco’s AI infrastructure orders are a significant growth driver, with expectations to surpass $1 billion by fiscal year-end. CEO Chuck Robbins has emphasized enterprises updating data center infrastructure for AI applications, which could bolster revenue.
- Cybersecurity and Subscriptions: Security revenue doubled to $2.02 billion in Q1 2025, and subscription revenue accounted for 56% of total revenue, reflecting Cisco’s shift toward recurring revenue models.
- Networking Challenges: Despite overall growth, networking revenue declined 23% to $6.75 billion in Q1 2025, signaling potential headwinds in Cisco’s core business.
- Shareholder Returns: Cisco returned $2.8 billion to shareholders in Q2 2025 and increased its quarterly dividend by 3% to $0.41 per share, alongside a $15 billion share repurchase authorization. Investors will look for updates on capital allocation strategies.
External factors, such as proposed tariffs and U.S. government spending constraints under the Fiscal Responsibility Act of 2023, may pose risks. However, Cisco’s CFO, Scott Herren, expressed optimism about a potential budget resolution with Republican control of Congress, which could unlock delayed government deals.
Analyst sentiment remains moderately bullish, with a “Moderate Buy” rating based on 21 analysts, including eight “Strong Buy,” two “Moderate Buy,” and 11 “Hold” recommendations. The average price target is $63.89, suggesting a 2.7% upside from current levels. However, posts on X highlight mixed technical signals, with the Moving Average Convergence Divergence (MACD) turning positive on April 24, 2025, indicating a 70.6% chance of a stock price increase over the next month based on historical patterns.
Potential Market Impact
Cisco’s stock has risen 24.52% over the past 52 weeks, underperforming the S&P 500’s 26% gain. An earnings beat could push the stock toward resistance levels around $63–$66, while a miss might see it test support near $57.89, as observed after the Q1 2025 report. The earnings outcome and management’s guidance for Q4 and full-year 2025—currently projecting revenue of $56.0–$56.5 billion and non-GAAP EPS of $3.60–$3.66—will be critical in shaping investor confidence.
Tickeron’s AI Double Agent Trading: A Game-Changer for Earnings Plays
Tickeron’s AI Double Agent Trading tool is an innovative solution designed to help traders capitalize on market opportunities, such as those presented by earnings reports like Cisco’s. By combining advanced artificial intelligence with a dual-strategy approach, the tool empowers investors to make data-driven decisions with greater confidence.
How It Works
The AI Double Agent Trading system employs two complementary AI models—bullish and bearish agents—that analyze market data simultaneously to provide balanced trade recommendations. For a stock like Cisco (CSCO), the tool evaluates:
- Historical Patterns: It assesses past earnings performance, price movements post-earnings, and technical indicators like the MACD signal noted on X.
- Real-Time Data: The system incorporates live market sentiment, volume trends, and news catalysts, such as Cisco’s AI order growth or tariff concerns.
- Risk-Reward Scenarios: The bullish agent identifies upside potential (e.g., a breakout above $63 if Cisco beats EPS estimates), while the bearish agent flags downside risks (e.g., a drop to $57 if networking revenue disappoints).
The AI generates a unified recommendation, assigning a confidence score to potential trades. For example, given Cisco’s 63% historical success rate with positive MACD signals and its consistent earnings beats, the tool might suggest a long position with a stop-loss below $57.89 and a target near $63.89.
Benefits for Traders
- Balanced Decision-Making: The dual-agent approach mitigates bias, offering a comprehensive view of both bullish and bearish outcomes.
- Earnings Optimization: The tool is particularly effective for earnings events, analyzing historical post-earnings price swings and volatility to recommend entry and exit points.
- Speed and Precision: By processing vast datasets in real time, the AI delivers actionable insights faster than manual analysis.
- Customizable Risk Management: Traders can set parameters for risk tolerance, position size, and time horizons, tailoring strategies to their goals.
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Tickeron’s AI Double Agent Trading tool offers traders a powerful way to navigate the volatility surrounding Cisco’s earnings. By leveraging dual AI models to assess bullish and bearish scenarios, the tool provides balanced, data-driven recommendations, enhancing decision-making for both short-term trades and long-term investments. As Cisco continues to evolve in the AI-driven tech landscape, tools like Tickeron’s AI can help investors stay ahead of the curve.
Momentum Indicator for CSCO turns positive, indicating new upward trend
CSCO saw its Momentum Indicator move above the 0 level on April 30, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned positive. In of the 77 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for CSCO just turned positive on April 24, 2025. Looking at past instances where CSCO's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
CSCO moved above its 50-day moving average on May 07, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CSCO crossed bullishly above the 50-day moving average on May 12, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CSCO advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 310 cases where CSCO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CSCO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CSCO broke above its upper Bollinger Band on May 13, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.378) is normal, around the industry mean (8.292). P/E Ratio (15.201) is within average values for comparable stocks, (95.196). Projected Growth (PEG Ratio) (3.538) is also within normal values, averaging (1.815). Dividend Yield (0.031) settles around the average of (0.042) among similar stocks. P/S Ratio (3.571) is also within normal values, averaging (17.990).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CSCO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a manufacturer of Internet Protocol based networking products and services related to the communications and information technology industry
Industry TelecommunicationsEquipment