Cisco reported a fiscal fourth-quarter revenue of $17.3 billion, an 18% increase year-over-year, surpassing analysts' expectations of $16.8 billion. For the upcoming quarter, Cisco projected revenue between $18 billion and $18.2 billion, exceeding the average estimate of $16.8 billion.
However, analysts from Piper Sandler noted that while the quarterly results were strong, the guidance appeared conservative given the current demand environment, leading to concerns that Cisco may be experiencing peak growth. Cisco's stock had previously risen over 60% this year, largely due to its involvement in the artificial intelligence sector.
Despite a solid forecast for approximately 15% revenue growth this year, analysts anticipate a slowdown to single-digit growth in the following fiscal year. Cisco CEO Chuck Robbins emphasized the company's record performance but acknowledged the need for prudence as they enter a new fiscal year.
Analysts at KeyBanc Capital Markets maintained a bullish outlook, citing potential market share gains from increased spending by hyperscalers, which accounted for significant revenue in the past fiscal year and are expected to nearly double by fiscal 2027. As of mid-day Thursday, Cisco's stock was trading around $113, down from a record closing high of $130 in June