Cisco shares fall 9% despite profit forecast
Cisco's stock experienced a 9% decline despite surpassing its earnings and financial expectations. The company announced that current quarter revenues are expected to range between $18 billion and $18.2 billion, exceeding analysts' forecasts of $16.8 billion. Revenues for the fourth quarter increased by 18% to $17.3 billion. Nevertheless, analysts noted that these forecasts appear conservative given the current demand environment, with an expected revenue growth of around 15% for the current year. However, growth is anticipated to slow to single digits in the next fiscal year. The CEO emphasized strong performance, highlighting increasing demand for infrastructure from cloud computing companies, which placed orders worth $4 billion during the quarter. Total orders are expected to rise to $7.5 billion by 2027. Despite the stock's decline, some analysts remain optimistic about the market’s future and Cisco's share of the anticipated growth.
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