Cisco shares fell even after it posted results and a revenue outlook that beat market expectations.
On Aug. 12, CNBC reported that Cisco forecast quarterly revenue of $18.2 billion, up from $18.0 billion. That was above the LSEG-compiled consensus estimate of $16.8 billion. Profit guidance for the quarter also beat expectations and annual guidance was strong, but the stock fell in after-hours trading.
Cisco's revenue in the latest quarter rose 18 percent from $14.7 billion a year earlier. Net profit increased 51 percent to $3.9 billion from $2.6 billion. Earnings per share rose to 97 cents from 64 cents.
The company also confirmed that increased AI investment translated into actual orders. Hyperscalers spent $4.0 billion on Cisco infrastructure orders in the quarter.
Hyperscalers accounted for about $4.0 billion of Cisco revenue in the last fiscal year, and Cisco expected the figure to nearly double to $7.5 billion in 2027.
Still, the sharp rise in the stock ahead of the earnings release weighed on the shares. Cisco shares rose more than 60 percent this quarter and gained about 8 percent this month.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr