Cisco's Q3 earnings expected to benefit from increased demand, strong growth, and AI-driven revenues

From Nasdaq: 2025-05-13 12:30:00

Zacks.com featured Cisco Systems, NVIDIA, and ServiceNow in their Analyst Blog. Cisco is set to release its Q3 fiscal 2025 results on May 14, with revenue expected between $13.9B and $14.1B and earnings between 90-92 cents per share. Analysts anticipate a 10.58% revenue growth and a 3.41% earnings growth year-over-year. Cisco’s earnings have consistently exceeded estimates in the past four quarters.

Cisco’s Q3 earnings are expected to benefit from increased demand for networking products like switching, enterprise routing, and data center switches. The company’s security segment is also showing strong growth, with orders more than doubling year over year. However, higher tariffs and macroeconomic challenges may impact order growth negatively.

Cisco’s stock has outperformed the sector and industry, gaining 1% year-to-date. While the stock is not cheap, trading at a higher P/S ratio than the industry average, Cisco’s prospects look promising due to its strong portfolio and investments in AI, cloud, and security. The company’s partnership with NVIDIA and ServiceNow is expected to drive AI-driven revenues.

Cisco remains a Hold with a Zacks Rank #3, signaling investors to wait for a favorable time to accumulate the stock. The company’s near-term results are expected to benefit from an improving networking and security business, along with a rich partner base. However, concerns regarding tariffs and macroeconomic challenges remain.

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Read more at Nasdaq: The Zacks Analyst Blog Highlights Cisco Systems, NVIDIA and ServiceNow