Cisco shares fell in extended trading after the company beat both earnings and revenue estimates and issued stronger-than-expected guidance. Hyperscalers pushed AI infrastructure orders to a $9.3 billion run-rate for the fiscal year, and Cisco landed five new design wins for its Silicon One chips and Acacia optics.
Cisco shares dropped in extended trading on Wednesday even though the company beat on both earnings and revenue. The stock market reaction came after Cisco had rallied more than 60% this quarter heading into the report, on optimism the networking company would play a bigger role in the artificial intelligence buildout.
Guidance tops Wall Street estimates
The company posted adjusted earnings per share of $1.22 versus the $1.17 analysts expected. Revenue came in at $17.25 billion against a $16.82 billion estimate, according to LSEG. The company also guided current-quarter revenue to $18 billion to $18.2 billion, well above the $16.8 billion average estimate.
Hyperscaler AI orders keep climbing
Hyperscalers placed $4 billion of infrastructure orders in the quarter, pushing the fiscal-year total to $9.3 billion. That group generated about $4 billion of revenue in the past fiscal year, a figure Cisco expects to almost double to $7.5 billion in fiscal 2027.
During the same earnings report, Cisco disclosed five new hyperscaler design wins for its Silicon One chips and Acacia optics, with a sixth commitment landing just after the quarter closed, Crypto Briefing reported. Three of the wins involve Cisco's P200 router chip, which handles 51.2 terabits per second and targets links between separate AI data centers, while two are tied to the Acacia optics business.
Five of the six major US hyperscalers are now confirmed customers of the Silicon One family, which has shipped over one million units since Cisco began developing the chips seven years ago.
Revenue and profit both jump
Revenue climbed 18% in the latest quarter to $17.25 billion from $14.7 billion a year earlier. Net income rose 51% to $3.9 billion, or 97 cents a share, from $2.6 billion, or 64 cents a share, a year ago. Cisco's Acacia pluggable optics business is expected to triple year-over-year, growing faster in percentage terms than the chip side.
Sources: CNBC, Crypto Briefing
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