Cisco Quarterly results reported on Wednesday were better than expected, but the stock fell about 7% in after-hours trading as profit guidance for the current period only met expectations.

Here’s how the company compares to the LSEG consensus:

• Earnings per share: Adjusted $1.04, expected $1.02
• income: $15.35 billion vs. $15.12 billion expected

Cisco’s revenue rose about 10% from $14 billion a year ago. statement. Net profit rose to $3.18 billion, or 80 cents a share, from $2.43 billion, or 61 cents a share, a year earlier. The adjusted figure excludes stock-based compensation costs.

Cisco expects adjusted earnings per share for the current period to be $1.02 to $1.04, on revenue of $15.4 billion to $15.6 billion. Analysts polled by London Stock Exchange Group (LSEG) expected earnings of $1.03 per share on revenue of $15.18 billion.

Investors have been hoping that Cisco will play a more central role in the artificial intelligence boom, which has boosted chipmakers and other data center technology providers. Cisco’s growth has accelerated, reporting $2.1 billion in AI infrastructure orders from hyperscale enterprises in the quarter.

Cisco’s core network revenue increased 21% year-on-year to $8.3 billion. Analysts polled by StreetAccount expected the company to be valued at $7.9 billion.

Cisco said this quarter it will Offer products Saudi Arabia’s Artificial Intelligence Infrastructure Project AMD. Cisco also Announce Introducing network switches that include NVIDIA chip.

“On the sovereign side, there’s really no need or expectation to have a meaningful impact in fiscal 2026,” Cisco CEO Chuck Robbins said on a conference call with analysts. “So we don’t need it to really accelerate the guidance that we’ve provided. It’s purely favorable.”

Revenues from Neoclouds are growing and these cloud providers are more competitive than established entities such as Amazon and MicrosoftRobbins said this should begin in the second half of this fiscal year and become more pronounced in fiscal 2027.

Rising memory prices have affected various equipment companies due to high demand for Nvidia graphics processing units. Robbins said Cisco has announced price increases and is adjusting contracts with channel partners.

“Do I think in some cases customers will try to buy ahead of time? Maybe,” he said. “But I don’t think this is going to be a big trend on the networking side of our business.”

For fiscal 2026, Cisco targets adjusted earnings per share of $4.13 to $4.17 and revenue of $61.2 billion to $61.7 billion, which would imply growth of 8.5%. LSEG’s consensus earnings forecast was $4.12 per share on revenue of $60.74 billion.

watch: Cramer’s trading halt: Cisco Systems