The Zacks Analyst Blog highlights Cisco Systems, Nvidia and Serviceenow

Chicago, IL – May 13, 2025 – Zacks.com announces the list of shares presented in the analyst blog. Every day, the analysts of Zacks Equity Research discuss the latest news and events that affect stocks and financial markets. The shares recently presented on the blog include: Cisco Systems CSCO, NVIDIA NVDA and ServiceNow Now.

Cisco systems is to publish its results of the third quarter for the 2025 financial year on May 14th.

In the third quarter of 2025, the company is expecting between $ 13.9 billion and $ 14.1 billion. Non-GAAP profits are expected between 90 and 92 cents per share.

The Zack's consensus estimate for sales is set at $ 14.05 billion, which indicates growth of 10.58% compared to the reported illustration of the previous year. The consensus mark for the profits has been steadily at 91 cents per share in the last 30 days, which indicates growth of 3.41%compared to the previous year.

CSCO's income exceeded the Zacks consensus estimate in all four quarters, with the average scoring 4.07%. (Find the latest EPS estimates and surprises for the Zacks profit calendar.)

Cisco Systems, Inc. Price EPS surprise | Cisco Systems, Inc. Quote

Let's see how things develop before this announcement.

The results 2025 in the third quarter of Cisco are expected to benefit from improved demand for networking products that are controlled by switching, corporate routing, webcale infrastructure and industrial network applications. The increasing return to-offices guidelines should have contributed to improving the demand for CSCO's campus switching portfolio. A strong demand for data center switches, thanks to the availability of 800 -gig -nexus -Switches based on the 51.2 Terabit Silicon One Chip from Cisco is remarkable.

The Zacks Consensus estimate for the Nenne Networking revenue in the third quarter is currently $ 6.76 billion, which indicates growth of 3.6% compared to the previous year.

Cisco benefits from strong security growth, which is due to a robust demand for solutions such as XDR, secure access and multicloud defense suites. The addition of Splunk was an important catalyst. In the second quarter of the 2025 financial year, security orders per year has more than doubled, which is due to the functions of the advanced threat information from Splunk.

The Zacks Consensus estimate for the security income in the third quarter is currently set at $ 2.195 billion, which indicates growth of 68.3% compared to the previous year.

Higher tariffs after the announcement of the “liberation day” and the macroeconomic challenges may have negatively influenced the Cisco mandate growth in the trendy quarter.

So far, the Cisco stocks have increased 1% year and exceed the decline in the Zacks Computer & Technology Sector of 8.5% and the return of the computer network industry from Zacks of 0.8%.

However, the Cisco share is not that cheap, since D at this moment suggests a stretched evaluation.

With regard to the 12-month P/S ratio of 12 months, CSCO acts at 4.08x, higher than 1.63 times of 3.89x and extreme networks in the industry.

Thanks to an innovative portfolio, Cisco offers the increase in the AI-related workload a strong growth. Ciscos aggressive investments in AI, cloud and security are remarkable. Cisco had AI infrastructure orders worth more than 700 million US dollars at the end of the first half of the 2025 financial year and remains on the right track to exceed 1 billion US dollars in AI infrastructure orders in the 2025 year 2025.

The strategy of Cisco, AI on security and cooperation platforms and developing agent functions throughout the portfolio is an important catalyst. It uses Agent -KI to improve the customer experience. The introduction of Renewals Agent, an agent-Ki-controlled solution with Mistral, and a new assistant who helps the customer digitize the management of network changes and digitize the risk network change management in this regard.

Cisco's security business benefits from a strong demand for Cisco Secure Access and XDR. On a combined basis, both solutions have won more than 1,000 customers in the following 12 months, and each of the products has about one million company users. Hypershield also gains traction.

The rich partner base of Cisco, which includes Meta platforms, Microsoft, NvidiaLenovo and Servicedeserves attention.

CSCO's cooperation with Nvidia helps to expand the Datacenter infrastructure portfolio of the former. CSCOS latest Nvidia-Ai servers and Ki-pods, integrated into the AI Enterprise Cloud-native software from NVIDIA and via Cisco-Intersight, managed, simplified and de-risk-ki infrastructure. The company is expanding its portfolio by unveiling the AI factory architecture developed in cooperation with Nvidia. This is expected that this increases Cisco's KIS-KIS inputs.

Cisco deepened his partnership with ServiceNow and combined the infrastructure and safety platforms of the former with the AI-controlled platform and security solutions of the latter. The first integration combines Cisco's AI defense skills with ServiceNow Secops in order to provide more holistic AI risk management and supply management.

The short-term results of Cisco are expected to benefit from an improvement in networking business and a growing security business as well as a rich partner base. Colonization -related problems and macroeconomic challenges, however, are important concerns.

Cisco is currently wearing a Zacks rank 3 (hold), which implies that investors should wait for a favorable time to collect the share. Here you will find the full list of today's Zacks #1 rank (Strong Buy).

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