Cisco's stock drops despite earnings, revenue beat

Cisco's stock drops despite earnings, revenue beat Skip Navigation Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu Key Points Cisco's results topped estimates, but they weren't good enough to satisfy Wall Street. The company said it sees revenue this quarter of between $18 billion and $18.2 billion, way above analysts' expectations. In this article CSCO Follow your favorite stocks CREATE FREE ACCOUNT Cisco Chairman and CEO Chuck Robbins speaks at a keynote address at the Cisco Live! conference in Las Vegas on June 7, 2023. Ethan Miller | Getty Images Entertainment | Getty Images Cisco shares dropped in extended trading on Wednesday despite a better-than-expected earnings report and a revenue forecast that sailed past estimates. Here's how the company did compared with analyst estimates, according to LSEG: Earnings per share: $1.22 adjusted vs. $1.17 expected Revenue: $17.25 billion vs. $16.82 billion expected Entering the fiscal fourth-quarter report, Wall Street had turned bullish on Cisco, pushing the stock up more than 60% this quarter and about 8% this month on optimism that the networking company would start playing a bigger role in the artificial intelligence boom. Cisco's numbers suggest that's happening, even though the stock traded lower on the report. The company said it sees revenue this quarter of $18 billion to $18.2 billion, topping the $16.8 billion average estimate, according to LSEG. Stock Chart Icon Stock chart icon Cisco's stock this year Cisco also issued an earnings forecast for the current period that exceeded expectations, as well as offering strong guidance for the full year. Hyperscalers, or the internet giants driving much of the AI spend, placed $4 billion of infrastructure orders in the quarter, bringing the total for the fiscal year to $9.3 billion, Cisco said. That group accounted for about $4 billion of revenue in the past fiscal year, with Cisco expecting that number to almost double in fiscal 2027 to $7.5 billion. Revenue climbed 18% in the latest quarter from $14.7 billion a year earlier. Net income increased 51% to $3.9 billion, or 97 cents a share, from $2.6 billion, or 64 cents a share, a year ago. WATCH : Options moves ahead of Cisco earnings watch now VIDEO 1:15 01:15 Options Action: Options moves around Cisco ahead of earnings Fast Money Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.