Cisco shares traded lower in extended sessions on Wednesday following the release of fiscal fourth-quarter financial results that exceeded Wall Street expectations across multiple metrics.
The networking company reported revenue climbed 18% in the latest quarter, rising to $14.7 billion from the previous year’s comparable period. Net income increased 51% to $3.9 billion, or 97 cents per share, compared with $2.6 billion, or 64 cents per share, a year earlier. For the current quarter, Cisco projected revenue of $18 billion to $18.2 billion, surpassing the $16.8 billion average analyst estimate according to LSEG. The company also issued earnings forecasts for the current period and full-year guidance that exceeded market expectations.
Entering the earnings announcement, Wall Street sentiment had turned notably positive toward the company amid optimism about Cisco’s expanding role in artificial intelligence infrastructure. The stock had appreciated more than 60% earlier in the year and roughly 8% during the month preceding the report.
The company attributed part of its strong performance to increased demand from hyperscalers, the major internet companies driving significant artificial intelligence spending. These large technology firms placed $4 billion of infrastructure orders during the quarter, bringing fiscal year totals to $9.3 billion. Cisco generated approximately $4 billion in revenue from this segment during the past fiscal year and projected that figure would nearly double to $7.5 billion in fiscal 2027, reflecting expanding opportunities in AI-related infrastructure deployment.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI