Cisco Systems, Inc. (CSCO)
Cisco is the digital plumbing of the internet, building the routers, switches, and security software that keep global networks connected and safe.
Is Cisco Systems, Inc. a good stock for a UK beginner?
The honest version: Cisco is the digital plumbing of the internet, building the routers, switches, and security software that keep global networks connected and safe.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Cisco becomes the dominant provider for AI-driven network infrastructure.
Technological obsolescence of legacy networking hardware.
What does Cisco Systems, Inc. do?
Cisco acts as the backbone for the internet, selling the hardware and software that allow businesses and governments to move data securely. Sales of this networking equipment, plus a growing stream of recurring subscriptions for software and security services, bring in the money. Its future hinges on how smoothly they move from selling one-off boxes to long-term software contracts, which bring steadier income.
On our factor screen it looks strongest on momentum and quality, and weakest on value.
- ✓Pays a dividend - about 1.4% a year
- ✓Growing - revenue up about 12% over the year
- ✓Very profitable - turns about 20% of sales into profit
- !High P/E of 38 - big growth is already priced in
- ✓Strong return on shareholder money (ROE 25%)
- Momentum screens high (78/100)
- Dominant market position in networking hardware
- Strong profit margins on software and services
- Consistent history of paying dividends to shareholders
- Value screens low (27/100)
- Rapid changes in networking technology making products obsolete
- Geopolitical tensions affecting global supply chains
- Intense competition from cloud-native networking providers
What do Cisco Systems, Inc.'s numbers mean?
How much money does Cisco Systems, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Cisco Systems, Inc. pay a dividend?
Yes - Cisco Systems, Inc. currently pays a dividend of about 1.4% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Cisco Systems, Inc. report earnings, and how did recent quarters go?
Cisco Systems, Inc. is next scheduled to report on about 2026-08-12 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-05-13 | $1.04 | $1.06 | Beat +2% |
| 2026-02-11 | $1.02 | $1.04 | Beat +2% |
| 2025-11-12 | $0.98 | $1.00 | Beat +2% |
| 2025-08-13 | $0.98 | $0.99 | Beat +1% |
| 2025-05-14 | $0.92 | $0.96 | Beat +5% |
| 2025-02-12 | $0.91 | $0.94 | Beat +3% |
Across the last 6 quarters here, Cisco Systems, Inc. came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Cisco Systems, Inc.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Cisco Systems, Inc.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Dominant market position in networking hardware
- Strong profit margins on software and services
- Consistent history of paying dividends to shareholders
- High valuation compared to historical averages
- Heavy reliance on corporate IT spending cycles
- Slower growth compared to pure-play software companies
- Rapid changes in networking technology making products obsolete
- Geopolitical tensions affecting global supply chains
- Intense competition from cloud-native networking providers
The write-up's own warning lights — if these start happening, the case above changes.
- A significant, sustained drop in corporate IT spending
- A major security breach in core Cisco infrastructure products
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.