Cisco's 1% Rally Amid 44th Market Liquidity Ranking as Earnings Outlook Brightens

On August 12, 2025, Cisco Systems (CSCO) closed higher by 1.00% as trading volume fell to $1.56 billion, a 23.96% decline from the previous day’s activity, ranking it 44th in market liquidity. The stock is poised to report fiscal Q4 earnings after the market close on August 13, with analysts projecting $0.97 per share and $14.6 billion in revenue, reflecting year-over-year growth of 11.5% and 7%, respectively. The company has exceeded earnings expectations in each of the past four quarters, averaging a 3.9% beat, while subscription revenue now accounts for over half of total sales.

Cisco’s strategic focus on AI infrastructure and global partnerships has driven recent momentum, though its long-term growth remains modest. The integration of the Splunk acquisition into Q4 results will provide clarity on organic performance, with analysts anticipating a slight slowdown in fiscal Q1 2026. Despite a 21% year-to-date gain, the stock trades at 17x forward earnings, reflecting a 4%-5% free-cash-flow yield. While expectations for improved growth are rising, historical trends show average annual revenue growth of 3% since 2010, underscoring the challenge of reaccelerating its expansion.

A backtest of a strategy buying the top 500 stocks by daily trading volume and holding for one day generated a total profit of $2,940 from December 2021 to August 2025. The approach recorded an average daily return of 0.24%, a maximum drawdown of $1,960, and a Sharpe ratio of 0.67 over the period.