Cisco shares remain above $70
What’s happening:-
Shares of Cisco Systems edged higher in after-hours trading on Wednesday, after the company released its fiscal fourth-quarter results.
What happened:-
The networking equipment maker posted stronger-than-expected sales and earnings for the latest quarter.
Cisco also issued upbeat guidance for the first quarter and fiscal 2026 as a surge in AI investments drove demand for the company’s networking equipment.
How were the results:-
The San Jose, California-based company reported single-digit sales growth for the fourth quarter ended July 26.Revenues grew 8% year-over-year to $14.67 billion, surpassing consensus estimates of $14.62 billionAdjusted earnings came in at 99 cents per share, beating Wall Street expectations of 97 cents per shar
Cisco shares remain above par
Why it matters:-
US big tech companies, including Amazon, Microsoft, Amazon and Alphabet, have continued to accelerate their spending to meet rising AI usage, despite huge investments over the past several quarters.
Cisco’s CEO Chuck Robbins said that the company’s AI infrastructure orders surpassed $800 million in the latest quarter. This brought the total to more than $2 billion for fiscal 2025, which is more than double its original target. Networking product orders also surged in the double digits in the fourth quarter.
Product revenue, which represents the lion’s share of the company’s overall revenue, surged 10% year-over-year, while services revenue came in flat.
Cisco shares
Management guided to revenues between $14.65 billion and $14.85 billion for the first quarter of fiscal 2026, higher than market estimates of $14.62 billion, and adjusted earnings of 97 cents to 99 cents per share, versus expectations of 97 cents per share.
Cisco guided to fiscal 2026 revenue of $59 billion to $60 billion, ahead of market estimates of $56.62 billion, and adjusted earnings of $4.00 to $4.06 per share, versus expectations of $3.79 per share.
How shares responded:-
Prior to this month, $70 had been a strong resistance level. Shares of Cisco Systems steeply in anticipation of the latest quarterly results, breaching $70 for the first time in five years on August 7 and remained comfortably above this mark. The stock rose 0.1% to $70.37 in extended trading hours on Wednesday following the release of the quarterly results.
cisco
What to watch:-
Investors will continue monitoring tariff-related announcements from the Trump administration, which are expected to impact the company’s revenue ahead.