Cisco forecasts annual revenue above estimates on sustained AI spending - reuters.com
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- Cisco forecasts annual revenue above estimates, citing sustained AI spending as the driver behind the stronger-than-expected guidance.
- Cisco shares slid 9% despite the earnings beat and upbeat outlook, with the selloff weighing on the Dow and prompting headlines to ask why the stock dropped on good results.
Why it matters: Cisco delivered an earnings beat AND above-estimate guidance, yet lost 9% — a signal that even 'above estimates' wasn't enough for a stock whose valuation already baked in an AI-infrastructure payoff. Networking sales surging on AI demand shows the spending trend is real, but the market reaction reveals how unforgiving the bar has become for any AI-adjacent name that doesn't dramatically overdeliver.
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