Cisco reported fiscal first-quarter results that topped analyst estimates and raised its AI infrastructure revenue expectation from hyperscalers to $9 billion. The networking company is trying to gain ground in the AI buildout, and its shares rose in extended trading.
Cisco shares rose in extended trading on Thursday after the networking gear maker reported better-than-expected fiscal first-quarter results. The company is working to gain a foothold in the artificial intelligence buildout after missing out on the early years of the generative AI boom.
Cisco tops LSEG estimates on earnings and revenue
Adjusted EPS came in at $1.40 against $1.33 expected, according to LSEG consensus estimates. Revenue reached $18.5 billion versus $18.1 billion expected.
Revenue increased 24% from $14.88 billion a year earlier, Cisco said in a statement. Net income also rose to $4.6 billion, or $1.14 per share, from $2.9 billion a year ago.
AI infrastructure target moves to $9 billion
Cisco raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion this fiscal year, more than double the figure in fiscal 2026. CEO Chuck Robbins framed the demand in the company's statement: "Organizations are turning to Cisco for our trusted, market-defining technology".
The stock has gained about 35% this year as of Thursday's close, while the Nasdaq has gained 9% over that stretch.
Second-quarter guidance beats the average estimate
For the fiscal second quarter, Cisco expects revenue of between $18 billion and $18.2 billion, above the average analyst estimate of $17.88 billion, according to LSEG. The company projects adjusted earnings per share of $1.34 to $1.36, compared with a $1.23 average estimate.
Source: CNBC
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