Cisco reported adjusted earnings per share of $1.22, surpassing the expected $1.17, and revenue of $17.25 billion, exceeding the $16.82 billion forecast. Despite these positive results, the stock declined after the announcement. Analysts had been optimistic about Cisco's potential role in the artificial intelligence sector, contributing to a 60% increase in stock price this quarter.
The company anticipates revenue for the current quarter to be between $18 billion and $18.2 billion, significantly above the $16.8 billion average estimate. Cisco's revenue grew 18% year-over-year, with net income rising 51% to $3.9 billion. Notably, hyperscalers, which are major players in AI spending, placed $4 billion in infrastructure orders during the quarter, indicating strong demand.
Cisco expects revenue from this segment to nearly double by fiscal 2027, which could position the company favorably in the evolving tech landscape