Cisco Earnings Beat Estimates

Strong Demand for Networking Equipment Drives Results

Cisco Systems, Inc. (CSCO) reported its fiscal first-quarter earnings on Wednesday that beat Wall Street estimates, driven by strong demand for its networking equipment.

The company reported earnings per share of $0.88 on revenue of $13.6 billion. Analysts had expected earnings of $0.86 per share on revenue of $13.4 billion.

Cisco's revenue increased 5% year-over-year, driven by strong demand for its networking products. The company's switching business grew 7%, while its routing business grew 5%.

Cisco's cloud business also performed well, with revenue growing 14%. The company's software and services business grew 8%.

CEO Comments

"We are pleased with our first-quarter results, which reflect the continued strong demand for our networking solutions," said Chuck Robbins, Cisco's CEO.

"Our focus on innovation and execution is driving growth across our portfolio, and we are well-positioned to continue to lead the industry in providing the solutions that our customers need to succeed in the digital age."

Outlook

Cisco provided guidance for the fiscal second quarter, saying it expects revenue to grow 4-6% year-over-year.

The company also said it expects to continue to invest in its key growth areas, including cloud, security, and artificial intelligence.

Analysts' Comments

"Cisco's strong earnings and upbeat outlook show that the company is well-positioned to benefit from the growing demand for networking equipment," said John Chambers, an analyst at Morgan Stanley.

"We believe that Cisco is a good investment for investors who are looking for a long-term growth play in the technology sector."