3 weeks ago
Cisco Stock Rises as Investors Focus on AI Networking Demand
Cisco makes the equipment that helps the internet and computer networks work.
It is one of the biggest technology companies in the world.
Cisco was about to share how much money it earned in its latest three-month period.
People who buy and sell stocks were excited before the news came out.
They think many companies want Cisco's products because of artificial intelligence, or AI.
This excitement helped Cisco's stock price go up a lot this year.
The stock has gained almost 60 percent so far.
On Wednesday it went up about 2 percent.
Experts think Cisco will make more money this quarter than it ever has before.
Cisco also said it expects a very good full year, which makes investors happy.
Cisco shares climbed 2.17%, or $2.61, to $123.07 on Wednesday ahead of the company's fourth-quarter earnings report.
Wall Street expects adjusted earnings of $1.17 per share on roughly $16.82 billion in revenue, which would be a quarterly record.
Cisco management forecast Q4 revenue of $16.7 billion to $16.9 billion and non-GAAP earnings of $1.16 to $1.18 per share.
After a strong fiscal third quarter, Cisco raised full-year guidance to revenue of $62.8 billion to $63 billion and adjusted earnings of $4.27 to $4.29 per share.
Investor enthusiasm is driven by AI infrastructure spending, with total product orders up 35% year over year and networking orders up more than 50%.
- Who
- Cisco Systems, the networking equipment maker, along with its investors and Wall Street analysts.
- What
- Cisco's shares rose ahead of its fiscal fourth-quarter earnings release, with investors focused on AI networking demand and the company expected to report record quarterly revenue.
- Where
- Not explicitly stated; U.S. stock market implied by the article's EDT time references.
- When
- Wednesday, when the fourth-quarter earnings were due after the market close; the article references 1:43 p.m. EDT trading data.
- Why
- Investors are focused on whether Cisco can maintain its earnings beats and deliver strong forward guidance amid AI infrastructure spending and a networking equipment refresh cycle.
Bullish Investors
Cautious Investors
Outlook after the stock's big rally
Bullish Investors
AI infrastructure spending and a networking refresh cycle will sustain growth, and strong forward guidance could push shares past the record high of $130.37.
Cautious Investors
The stock has gained nearly 60% this year and trades near its record, so expectations are high and any sign of slowing momentum could limit further gains.
Key facts
- Company
- Cisco Systems
- Event
- Fiscal Q4 earnings release after market close Wednesday
- Expected Q4 adjusted EPS
- $1.17 per share
- Expected Q4 revenue
- Approximately $16.82 billion (would be a quarterly record)
- Q3 record revenue
- $15.8 billion, up 12% year over year
- Q3 non-GAAP EPS
- $1.06, up 10%
- Raised full-year guidance
- $62.8B to $63B revenue; $4.27 to $4.29 adjusted EPS
- Share price at 1:43 p.m. EDT
- $123.07, up 2.17% ($2.61); record high $130.37
Sources
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