Cisco reported its latest quarterly earnings, surpassing analyst expectations on revenue and earnings per share. However, the stock experienced a dip in after-hours trading as the company’s financial outlook for the current period aligned with market forecasts, failing to ignite substantial investor enthusiasm.
In the fiscal second quarter, Cisco posted adjusted earnings per share of $1.04, exceeding the $1.02 consensus estimate. Revenue for the period climbed to $15.35 billion, also outperforming the projected $15.12 billion. This represents a notable 10% increase from the $14 billion reported in the same quarter last year. The company’s net income saw a significant jump to $3.18 billion, or 80 cents per share, compared to $2.43 billion, or 61 cents per share, year-over-year. The adjusted figures exclude the impact of stock-based compensation costs, offering a clearer view of operational profitability.
Looking ahead, Cisco anticipates adjusted earnings per share to range between $1.02 and $1.04 for the current period, with revenue projected between $15.4 billion and $15.6 billion. These projections fall within the range of analyst expectations, which were for $1.03 per share and $15.18 billion in revenue.
Investors have been keenly observing Cisco’s strategic positioning amidst the burgeoning artificial intelligence (AI) revolution, a trend that has significantly boosted chip manufacturers and providers of data center technologies. Cisco is demonstrating early traction in this space, reporting $2.1 billion in AI infrastructure orders from hyperscale clients during the quarter. This signals a growing demand for its foundational networking solutions in AI-driven environments.
The company’s core networking segment showcased robust growth, with revenue increasing 21% year-over-year to $8.3 billion, surpassing the $7.9 billion expected by analysts. This segment’s performance underscores Cisco’s enduring relevance in providing the essential infrastructure that powers modern digital operations.
Further highlighting Cisco’s involvement in advanced technology initiatives, the company announced its participation in a significant AI infrastructure project in Saudi Arabia. This collaboration involves providing critical products alongside Advanced Micro Devices. Additionally, Cisco unveiled a new networking switch incorporating an Nvidia chip, demonstrating its commitment to integrating cutting-edge components into its product portfolio to meet the escalating demands of AI and high-performance computing.
For the full fiscal year 2026, Cisco has set ambitious targets, forecasting adjusted earnings per share between $4.13 and $4.17, and revenue in the range of $61.2 billion to $61.7 billion. This outlook suggests an anticipated annual growth rate of approximately 8.5%. These projections are slightly ahead of the LSEG consensus, which estimated earnings of $4.12 per share and revenue of $60.74 billion.
Cisco executives are scheduled to elaborate on these results and provide further insights during a conference call with analysts.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/17323.html
