Cisco Shares Fall About 2% as Hardware Margins Draw Focus

Cisco shares fell about 2% in premarket trading Friday, Nov. 13, giving back after-hours gains following the company’s quarterly results as focus shifted to pressure on hardware margins.

Cisco reported adjusted earnings of $1.40 per share, above the $1.33 analyst estimate. Revenue reached $18.5 billion, topping the $18.1 billion forecast. Its fiscal second-quarter outlook also exceeded estimates, with revenue projected at $18 billion to $18.2 billion and adjusted earnings of $1.34 to $1.36 per share. Analysts had estimated $17.88 billion in revenue and $1.23 per share in adjusted earnings.

Cisco also raised its fiscal-year target for AI infrastructure revenue from hyperscaler sales to $9 billion.