Cisco Earnings: Growth Guidance for Fiscal 2025 is Positive, and Shares Look Fairly Valued

We maintain our $50 per share fair value estimate of wide-moat Cisco Systems, as our long-term thesis is intact after the firm reported fiscal fourth-quarter results. Cisco’s fiscal year 2025 guidance was a little light compared with our model, but we continue to see a return to growth in fiscal 2025 favorably. Long term, we see Cisco as a low- to mid-single-digit revenue growth story, with ongoing strength in its core campus and enterprise networking markets. We don’t expect the firm to be a major winner from AI investment, but see a modest position growing over time. We like the integration with Splunk, which should bolster Cisco’s ecosystem of joined networking, security, and observability. Fiscal fourth quarter results and fiscal first quarter guidance were largely in line with our expectations. Shares are up 6% after-hours on growth guidance for fiscal 2025, and we see the stock as fairly valued.