Cisco Stock Climbs as Earnings Beat Expectations Amid Strong AI Demand — Barrons.com
By Angela Palumbo
Cisco Systems stock rose Wednesday after the networking company reported better-than-expected financials for its latest quarter.
Cisco reported fiscal first-quarter adjusted earnings of $1 a share on revenue of $14.88 billion. Analysts surveyed by FactSet expected earnings of 98 cents a share on revenue of $14.78 billion.
Cisco's first-quarter networking revenue — the segment that brings in the most revenue for the company and includes gear used in AI data centers — was $7.77 billion, above expectations of $7.45 billion.
Cisco also provided a strong financial forecast. The company said it expects second-quarter earnings to be between $1.01 and $1.03 a share on revenue between $15 billion and $15.2 billion, above analysts' estimates of 98 cents a share and $14.62 billion.
For the fiscal year, Cisco expects earnings of $4.08 to $4.14 a share on revenue between $60.2 billion and $61 billion. Wall Street has expected fiscal 2026 earnings of $4.04 a share on revenue of $59.64 billion.
Shares of Cisco were up 5.0% in after-hours trading following the report.
The stock has gained 25% this year, outperforming the S&P 500's 16% rise. Bullish Cisco investors have been optimistic the increasing demand from enterprises to invest in AI will lead to continued revenue and earnings acceleration.
Cisco said on Wednesday that AI Infrastructure orders taken from hyperscaler customers totaled $1.3 billion, "reflecting a significant acceleration in growth."
"The widespread demand for our technologies highlights the critical role of secure networking and the value of our portfolio as customers move quickly to unlock the potential of AI," CEO Chuck Robbins said in the earnings release Wednesday.
Write to Angela Palumbo at angela.palumbo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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