Last week saw the newest quarterly earnings release from Cisco Systems, Inc. (NASDAQ:CSCO), an important milestone in the company's journey to build a stronger business. Revenues were US$14b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.68, an impressive 51% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the current consensus from Cisco Systems' 27 analysts is for revenues of US$56.0b in 2025. This would reflect an okay 5.8% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 4.2% to US$2.46. Before this earnings report, the analysts had been forecasting revenues of US$55.9b and earnings per share (EPS) of US$2.33 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.2% to US$61.95. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Cisco Systems analyst has a price target of US$78.00 per share, while the most pessimistic values it at US$50.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Cisco Systems shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Cisco Systems' rate of growth is expected to accelerate meaningfully, with the forecast 7.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. Cisco Systems is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cisco Systems following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Cisco Systems. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Cisco Systems analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Cisco Systems' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.