forbes.com
Cisco Q4 Earnings Expected to Show Growth; Positive Historical Stock Performance Trend
Cisco Systems (CSCO) is expected to report Q4 2025 earnings of $0.98 per share on $14.62 billion in revenue on August 13, 2025, showing year-over-year growth and a positive historical post-earnings stock performance trend.
- How did strong AI-related demand impact Cisco's recent performance and future guidance?
- Strong demand for AI-related products drove Cisco's Q3 results exceeding expectations and lifted full-year targets. Management's reaffirmed Q4 EPS guidance indicates continued positive momentum. The company boasts a $281 billion market capitalization, $56 billion in trailing twelve-month revenue, $12 billion in operating profits, and $9.8 billion in net income.
- What are Cisco's projected Q4 earnings, and what is their historical post-earnings stock performance?
- Cisco Systems (CSCO) is expected to report fiscal fourth-quarter earnings of $0.98 per share on $14.62 billion in revenue on August 13, 2025. This represents a 13% year-over-year increase in adjusted earnings and a 7% rise in sales. Historically, CSCO stock has outperformed after earnings announcements 63% of the time.
- What is the correlation between Cisco's short-term and longer-term post-earnings returns, and how can this be used to inform trading strategies?
- The correlation between Cisco's short-term and medium-term post-earnings returns may offer event-driven traders a less risky strategy. Analyzing the correlation between 1-day, 5-day, and 21-day returns could help predict future price movements. Peer company performance preceding Cisco's earnings announcement might also influence investor sentiment and stock price reaction.
Cognitive Concepts
Framing Bias
The framing is heavily slanted towards the positive, emphasizing the historical outperformance of CSCO stock after earnings announcements and the positive Q3 results driven by AI demand. While presenting some negative historical returns, the overall tone and emphasis clearly favor a bullish outlook. The headline, if there were one, might read "Cisco Poised for Another Earnings Beat", rather than something more neutral.
Language Bias
The language used is generally neutral, but certain phrases like "significantly", "outperform", and "bullish outlook" (implied) subtly convey a positive bias. Words such as "surpassed expectations" and "strong demand" are also positive loaded terms.
Bias by Omission
The analysis focuses heavily on the financial performance and historical stock trends of Cisco, potentially omitting other relevant factors influencing investor decisions, such as competitive landscape, technological advancements, and broader economic conditions. While acknowledging limitations of space, the lack of discussion on these aspects constitutes a bias by omission.
False Dichotomy
The article presents a somewhat simplified view of investment strategies by focusing primarily on event-driven trading based on historical earnings data and suggesting Trefis High Quality portfolio as an alternative, neglecting other potential investment approaches and risk profiles.
Sustainable Development Goals
The article highlights Cisco's strong financial performance, with a 13% increase in adjusted earnings and a 7% rise in sales year-over-year. This positive economic growth contributes to decent work and economic growth by supporting jobs within the company and its supply chain, as well as contributing to overall economic prosperity. The mention of a $281 billion market capitalization and $56 billion in revenue over the past twelve months further underscores the company's significant economic contribution.