Network equipment maker: Cisco stock falls despite record earnings and strong forecast
Cisco beats expectations with its business figures and expects significantly higher revenues. Nevertheless, the stock falls by almost five percent after the market closes.
Frankfurt. Network equipment provider Cisco has posted business figures that exceeded market expectations due to strong demand. Revenue and earnings for the past quarter had reached record levels, said Chief Financial Officer Mark Patterson on Wednesday. Productivity was the highest it has been in 30 years. This trend is expected to continue.
Cisco is benefiting greatly from the current construction boom in data centers. For the current fiscal year 2026/2027, the US group is targeting revenues of $72.2 to $73.4 billion. This is around $5 billion more than analysts had expected so far. An important growth driver is the orders from so-called hyperscalers. The world's three largest cloud providers, Amazon Web Services (AWS), Google, and Microsoft, are expected to contribute around 10 percent to Cisco's revenue in the coming months.
Previously, the company had assumed $6 billion. These prospects were well received by investors. The company's stock rose by 3 percent in after-hours trading on Wall Street. In the fiscal year 2025/2026, Cisco increased revenue by 12 percent to $63.3 billion and adjusted earnings by 14 percent to $4.33 per share.
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