Cisco beats Q4 estimates and issues strong forecast, shares fall in extended trading

Published Aug 12, 08:51 PM UTC

Cisco Systems reported fiscal fourth-quarter earnings that topped analyst estimates, with adjusted earnings per share of $1.22 versus $1.17 expected and revenue of $17.25 billion versus $16.82 billion expected. The company also issued a strong revenue forecast for the current quarter of $18 billion to $18.2 billion, well above the $16.8 billion average estimate. Despite the better-than-expected results, Cisco's stock dropped in extended trading on Wednesday. The decline came after Wall Street had pushed the stock up more than 60% this quarter on optimism about Cisco's role in the AI boom. The company reported that hyperscalers placed $4 billion in infrastructure orders in the quarter, totaling $9.3 billion for the fiscal year. Cisco expects revenue from hyperscalers to nearly double in fiscal 2027 to $7.5 billion. Overall revenue climbed 18% year-over-year to $17.25 billion, while net income surged 51% to $3.9 billion.