Cisco Forecasts Far-Better-Than-Expected Revenue, Citing Record Broad Demand
Cisco Systems issued a quarterly revenue outlook well above Wall Street expectations, indicating that its efforts to capture a larger share of the networking-equipment market for artificial-intelligence data centers are paying off. The company said in a statement Wednesday that revenue for its fiscal first quarter ending in October will be between $18 billion and $18.2 billion. The average analyst estimate was $16.8 billion. Adjusted earnings per share are expected to be between $1.32 and $1.34, also above the market estimate of $1.17. The company attributed the strong sales to “broad and record demand for Cisco technologies.” “We expect AI momentum to remain strong,” industry research analyst Woo Jin Ho wrote in a report. Cisco shares rose 1% to $125.19 in after-hours trading. As of Wednesday’s close, the stock had gained 61% year to date. Despite its focus on supplying AI data centers, Cisco’s sales still depend on its traditional networking business. In the fiscal fourth quarter ended in July, revenue rose 18% from a year earlier to $17.3 billion. Adjusted earnings per share came in at $1.22. Analysts had previously forecast revenue of $16.8 billion and earnings per share of $1.17.
The company said in a statement Wednesday that revenue for its fiscal first quarter ending in October will be between $18 billion and $18.2 billion. The average analyst estimate was $16.8 billion. Adjusted earnings per share are expected to be between $1.32 and $1.34, also above the market estimate of $1.17.
The company attributed the strong sales to “broad and record demand for Cisco technologies.”
“We expect AI momentum to remain strong,” industry research analyst Woo Jin Ho wrote in a report.
Cisco shares rose 1% to $125.19 in after-hours trading. As of Wednesday’s close, the stock had gained 61% year to date.
Despite its focus on supplying AI data centers, Cisco’s sales still depend on its traditional networking business. In the fiscal fourth quarter ended in July, revenue rose 18% from a year earlier to $17.3 billion. Adjusted earnings per share came in at $1.22. Analysts had previously forecast revenue of $16.8 billion and earnings per share of $1.17.