Cisco Stock Dips Despite Strong Earnings

Cisco announced its quarterly results, revealing a 10% year-over-year revenue increase to $14 billion. Net income also saw a substantial rise, reaching $3.18 billion or 80 cents per share. The company is actively participating in the AI boom, with $2.1 billion in AI infrastructure orders from hyperscalers during the quarter.

Core networking revenue demonstrated robust growth, increasing by 21% to $8.3 billion. Cisco also highlighted its involvement in significant projects, including an AI infrastructure initiative in Saudi Arabia alongside Advanced Micro Devices and the launch of a networking switch featuring an Nvidia chip.

Despite the positive performance, Cisco's stock experienced a decline in after-hours trading. This reaction stemmed from the company's earnings guidance for the current period, which aligned with analyst expectations rather than surpassing them. For the full fiscal year 2026, Cisco projects adjusted earnings per share between $4.13 and $4.17, with revenue targeted between $61.2 billion and $61.7 billion.