Cisco Surpasses Earnings Expectations as AI Boosts Demand for Network Hardware

Cisco Systems outperformed expectations in the first quarter, aided by an increase in demand for networking hardware amid the artificial intelligence boom. The company reported an adjusted earnings per share of $0.91, surpassing expectations of $0.87. For the quarter ending October 26, the company's revenue decreased by 6% to $13.84 billion, exceeding forecasts of $13.77 billion.

Cisco now anticipates its annual revenue, which it previously estimated between $55.0 billion and $56.2 billion, to be between $55.3 billion and $56.3 billion. Analysts had expected $55.89 billion. The company raised its annual adjusted earnings forecast range from $3.52 to $3.58 to $3.60 to $3.66.

For the second quarter, the company expects revenue to be between $13.75 billion and $13.95 billion, which exceeds analysts' average estimate of $13.73 billion. It forecasts quarterly adjusted earnings per share to be between $0.89 and $0.91 compared to estimates of $0.87.