Cisco Lifts Its Forecast as Earnings Top Expectations, Despite Declining Revenue

Cisco Systems (CSCO) reported fiscal first-quarter earnings that exceeded analysts’ expectations and raised its full-year forecast, despite declining revenues.

The networking-equipment provider reported first-quarter net income of $2.7 billion or 68 cents per share, down from $3.6 billion or 89 cents per share a year earlier but above analysts’ projections. Cisco delivered revenue of $13.8 billion, down 6% year-over-year and roughly in line with the analyst consensus compiled by Visible Alpha.

For the second quarter, Cisco projected revenue of $13.75 billion to $13.95 billion, compared to estimates of $13.8 billion.

Cisco Boosts Its Full-Year Outlook

The company raised its full-year revenue forecast to between $55.3 billion and $56.3 billion, from $55 billion to $56.2 billion previously. It also lifted its earnings per share projection to between $2.26 and $2.38, up from $1.93 to $2.05.

The results come after Cisco cut about 7% of its workforce a quarter ago, as part of a pivot to higher-growth areas like cybersecurity and artificial intelligence. That move followed a 5% cut in February that affected roughly 4,250 employees.

Shares of Cisco were little changed in extended trading Wednesday following the release. They’ve gained over 17% for 2024 so far through Wednesday’s close.