economy
Cisco shares slide 8% despite earnings beat and stronger-than-expected guidance
Cisco is showing booming demand for AI infrastructure, but its results weren't good enough to satisfy investors.
TL;DR
- Cisco's stock dropped 8.4% after an earnings report that beat expectations.
- Revenue for the current quarter is projected between $18 billion and $18.2 billion, exceeding the $16.8 billion estimate.
- Fiscal fourth-quarter revenue increased 18% to $17.3 billion.
- Analysts at Piper Sandler noted conservative guidance and potential peak growth concerns.
- Cisco shares had risen over 60% year-to-date due to the AI boom.
- Hyperscalers placed $4 billion in infrastructure orders in the quarter, contributing to significant revenue growth.
- Cisco anticipates hyperscaler revenue to nearly double in fiscal 2027.