Cisco shares drop premarket despite HSBC upgrade following stronger-than-expected third-quarter earnings and guidance.
HSBC upgraded Cisco Systems to a buy rating after the company reported third-quarter results that exceeded expectations and provided an improved outlook. The networking equipment maker’s shares fell 2.8% in premarket trading despite the positive analyst move.
Cisco’s Q3 performance surpassed consensus estimates, with the company signaling confidence in its growing role in artificial intelligence infrastructure. The upgrade reflects a structural shift in Cisco’s positioning within the AI ecosystem, according to the investment firm.
Premarket trading saw a decline in CSCO shares, contrasting with the bullish analyst sentiment. No immediate catalyst for the drop was provided in the report.