Cisco Systems expected to report strong Q2 results with increased demand for networking products

From Nasdaq: 2025-02-11 04:31:00

Zacks.com featured Cisco Systems, NVIDIA, and AT&T in their Analyst Blog. Cisco Systems is set to release their second-quarter fiscal 2025 results on Feb. 12. Revenue estimates are between $13.75 billion and $13.95 billion, with non-GAAP earnings expected between 89 and 91 cents per share. The Zacks Consensus Estimate for revenues is $13.86 billion, with earnings expected at 91 cents per share.

Cisco’s second-quarter fiscal 2025 results are expected to benefit from improved demand for networking products, specifically the Nexus brand of data center switches. Collaboration product orders grew double-digits in the fiscal first quarter, driven by demand for devices and Cisco’s Cloud Webex Suite. Security growth is strong, with Security orders more than doubling year over year.

Cisco shares have gained 24.5% in the past 12 months, outperforming the Computer & Technology sector and Computer Networking industry. However, the Value Score of D suggests a stretched valuation, with a forward 12-month P/S ratio of 4.34X. Cisco’s prospects ride on their strong portfolio, including AI-related workload growth opportunities.

Cisco’s partner base, including NVIDIA and AT&T, boosts their prospects. Collaboration with NVIDIA expands Cisco’s datacenter infrastructure portfolio. Analysts suggest accumulating Cisco stock ahead of the fiscal second quarter results. Cisco currently carries a Zacks Rank #2 (Buy).

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