Investing.com — Cisco issued upbeat second-quarter guidance 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 shopping for and promoting Thursday after the report.
Cisco launched Q1 adjusted EPS of $0.91 on revenue of $13.8 billion. Analysts polled by Investing.com anticipated EPS of $0.87 on earnings of $13.78B.
“Cisco is off to a strong start to fiscal 2025,” said 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 agency expects Q2 earnings to differ from $13.75 billion to $13.95 billion, moreover above the consensus forecast of $13.73 billion.
The agency sees 2025 full-year adjusted EPS of $3.60 to $3.66 on earnings in quite a lot of $55.3B to $56.3B, in distinction with its earlier forecasts of between $3.52 and $3.58 for EPS and $55.0 billion to $56.2 billion for earnings. Analyst estimates stood at $3.58 and $55.9 billion, respectively.
Bank of America analysts said the earnings guidance 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 monetary establishment raised its worth aim on CSCO shares from $60 to $72.
Jefferies analysts moreover raised their aim worth on Cisco stock 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 well-known.
Yasin Ebrahim contributed to this report.
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