Investing.com — Cisco issued upbeat second-quarter steerage and raised its annual outlook following fiscal first-quarter outcomes that topped Wall Street estimates.
Still, Cisco Systems Inc (NASDAQ:CSCO) fell 4% in premarket buying and selling Thursday after the report.
Cisco introduced Q1 adjusted EPS of $0.91 on revenue of $13.8 billion. Analysts polled by Investing.com anticipated EPS of $0.87 on income of $13.78B.
“Cisco is off to a strong start to fiscal 2025,” stated Chuck Robbins, chair and CEO of Cisco. “Our customers are investing in critical infrastructure to prepare for AI, and with the breadth of our portfolio, we are uniquely positioned to capitalize on this opportunity.”
Looking to fiscal Q2, Cisco initiatives EPS between $0.89 and $0.91, surpassing the consensus estimate of $0.87. The firm expects Q2 income to vary from $13.75 billion to $13.95 billion, additionally above the consensus forecast of $13.73 billion.
The firm sees 2025 full-year adjusted EPS of $3.60 to $3.66 on income in a variety of $55.3B to $56.3B, in contrast with its earlier forecasts of between $3.52 and $3.58 for EPS and $55.0 billion to $56.2 billion for income. Analyst estimates stood at $3.58 and $55.9 billion, respectively.
Bank of America analysts stated the income steerage hike was primarily attributable to better-than-expected Q1 outcomes and Q2 outlook, “and we see room for growth acceleration in 2H25 on the back of the strong Cloud/AI and Security order growth.”
The financial institution raised its value goal on CSCO shares from $60 to $72.
Jefferies analysts additionally raised their goal value on Cisco inventory from $53 to $66, citing “solid results and guidance bolstered by depleted customer inventory and positive AI commentary.”
“We still think the risk/reward in the shares is tilted positively,” they famous.
Yasin Ebrahim contributed to this report.
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