Cisco Q4 Revenue Declines 6% YoY, Shares Slide 2.5% After-Hours

Even though its performance was above analysts’ expectations, Cisco announced a fourth consecutive quarter of falling sales. During prolonged trading, the stock fell 2.5 percent. According to a statement, Cisco’s sales decreased 6% from $14.7 billion in the previous year to the quarter that concluded on October 26. From $3.64 billion, or 89 cents per share, in the same quarter last year, net income dropped to $2.71 billion, or 68 cents per share.

Cisco Networking Sales Drop 23% to $6.75B, But Security Revenue Doubles to $2.02B

Networking sales fell 23% to $6.75 billion, which was somewhat less than the $6.8 billion that StreetAccount’s survey of analysts predicted. In contrast to the StreetAccount estimate of $1.93 billion, security revenue quadrupled to $2.02 billion. Cisco made $1.09 billion from collaboration, which was somewhat less than the $1.04 billion average projection.

During the earnings call on Wednesday, Cisco CEO Chuck Robbins reported that the company received over $300 million in orders for artificial intelligence infrastructure from major clients during the quarter. Additionally, server manufacturers like Dell and HPE have concentrated on selling gear that enables customers to employ generative AI. According to Robbins, Cisco has unveiled technology that incorporates Nvidia’s graphics processing units, which are frequently used to train AI models.

We have earned more design wins and remain confident that we will exceed our target of $1 billion of AI orders this fiscal year from web-scale customers. Over time, you’ll see us support other GPUs as the market demands. But that partnership is still going fine. It’s still early. And I think 2025 is when we’ll start to see enterprise real deployment of some of these technologies.

Robbins

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