Cisco’s Stock Drops 7% on Mediocre Forecast Even as Earnings and Revenue Top Estimates

Cisco exceeded expectations for earnings and revenues. The company’s sales increased by 10%, reaching $15.35 billion. Profits also increased compared to the previous year. Despite the positive financial reports, the company’s stock declined by around 7% as earnings were accompanied by guidance for the current quarter, which met market expectations. The company is also reaping the benefits of the increase in demand for AI infrastructure. The company received $2.1 billion in AI related orders and continues to grow in its traditional networking business. Cisco expects steady growth in the coming year but had hoped for a stronger outlook, as it is in the midst of an AI boom.