Cisco Drops Up to 9% Despite Earnings Beat
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- Cisco shares dropped between 6% and 9% after earnings — Yahoo Finance reported a 6% slide, while CNBC and Dow Jones coverage both put the decline at 9%, with the Dow Jones Industrial Average held back while the Nasdaq climbed in the opposite direction.
- The selloff came despite Cisco posting an earnings beat with stronger-than-expected guidance, per CNBC, and networking sales surging on AI demand, per Barron's — with Yahoo Finance attributing the slide to slipping margins.
Why it matters: Cisco delivered a clean earnings beat, raised guidance, and posted AI-fueled networking growth, yet still lost up to 9% — showing that margin erosion outweighed top-line strength for investors. The selloff also held the Dow Jones Industrial Average back while the Nasdaq climbed, making Cisco the single Dow component cited as a drag in cross-coverage.
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