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Cisco Systems (CSCO) has been on a tear. The networking giant's stock hit a new all-time high of $99.93 on Tuesday, and it's up more than 30% so far in 2026. But can it keep the momentum going when it reports fiscal third-quarter earnings after the bell on Wednesday?
Here's what Wall Street is expecting, what one market strategist is watching, and the key themes that could move the stock.
Analysts are looking for Cisco to post revenue of $15.56 billion, up from $14.15 billion a year ago. That would be a new company record, topping the $15.35 billion it reported in the second quarter. Cisco has beaten revenue estimates for 15 straight quarters, so the bar is high.
On the bottom line, the consensus is for earnings per share of $1.00, compared to $0.96 last year. Cisco has beaten EPS estimates for more than 20 consecutive quarters. The company's own guidance called for revenue between $15.4 billion and $15.6 billion and EPS in the range of $1.02 to $1.04.
Freedom Capital Markets Chief Market Strategist Jay Woods has been watching Cisco closely. He notes that the stock fell 12.3% after last quarter's report — its second-worst earnings-day reaction in over a decade — even though Cisco beat on both revenue and earnings and highlighted AI-driven demand.
"The investor concern was margin compression due to rising memory costs, an item that overshadowed the double beat," Woods said in a weekly newsletter. "This quarter, investors will be laser-focused on whether margins stabilize and if they can convert its growing AI order book into profitable revenue."
Woods expects volatility. He points out that Cisco's implied move for earnings day is about 5.8% in either direction. On the downside, he sees support around $90, and if it falls further, $82 could be "a great longer-term entry opportunity."
But the long-term picture is what excites him. "When we back it out to its dot-com days, we see that parabolic rise and an over two-decade struggle to return to its frightening glory. Shares broke out in 2024 and haven't looked back," Woods said. He acknowledges the stock is overbought but says the "long-term path higher still looks phenomenal."
His big question: "Can it return to those parabolic '90s like returns? We may soon see, but either way, the stock is back and slow and steady is doing just fine for those holding this gem patiently."
Analysts have been raising their price targets recently. Evercore ISI maintained an Outperform rating and boosted its target from $100 to $110. JPMorgan kept an Overweight rating and raised its target from $95 to $96. Truist Securities initiated coverage with a Buy rating and a $94 target.
Beyond the headline numbers, investors will be focused on margins. Last quarter's memory cost pressure spooked the market, so any signs of stabilization would be welcome. AI is another key theme — Cisco has been pushing new products and platforms, and the market wants to see if that momentum is translating into orders.
Guidance will also be critical. After the second-quarter beat, Cisco raised its full-year revenue and EPS outlook. If it beats again, another raise is likely.
And there's a geopolitical angle: Cisco CEO Chuck Robbins is set to accompany President Donald Trump on his trip to China. That could open doors for new deals and strengthen Cisco's position in international markets, as well as make it a preferred vendor for U.S.-related contracts.
Cisco shares were down 0.7% to $98.03 on Tuesday, after hitting that new 52-week high of $99.93 intraday. The stock is up 30.1% year-to-date in 2026.
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