From Nasdaq: 2025-02-18 06:16:48

Cisco Systems Inc (NASDAQ: CSCO) has outperformed the S&P 500 with a 6% year-to-date growth. Q2 results exceeded estimates with $14 billion in revenue, a 9% increase year-over-year. Net income declined 8% to $2.43 billion, but EPS increased 8% to $0.94. Cisco raised full-year revenue forecast to $56-56.5 billion.

Cisco’s mixed first-half performance saw security revenues double y-o-y and networking revenues decline by 14%. Acquisition of Splunk for $27 billion bolstered security offerings, contributing positively to revenue. Cisco’s gross margins improved due to lower costs. Stock returns have been volatile, unlike the Trefis High-Quality Portfolio.

Cisco’s stock returns have fluctuated over the years, with 46% in 2021, -22% in 2022, 9% in 2023, and 22% in 2024. The Trefis High-Quality Portfolio has been less volatile and outperformed the S&P 500. Cisco’s valuation is almost in line with the market price. Revised valuation is $65 per share based on expected EPS.



Read more at Nasdaq: Is Cisco Stock A Buy After Q2 Earnings?