CSCO Tops Estimates, Lifts Guidance on AI Demand Surge

Cisco Systems raises full-year outlook after beating revenue and earnings forecasts driven by strong AI-related sales. Cisco Systems reported quarterly revenue and earnings per share above estimates, prompting the company to raise its full-year guidance. The upgrade reflec

Cisco Systems raises full-year outlook after beating revenue and earnings forecasts driven by strong AI-related sales.

Cisco Systems reported quarterly revenue and earnings per share above estimates, prompting the company to raise its full-year guidance. The upgrade reflects robust demand for AI-driven networking solutions and expanding margins, analysts noted.

Prior to the report, consensus estimates had projected modest growth, but AI-related sales outperformed expectations. Nvidia’s recent 100%+ surge in ex-China sales has also highlighted the sector’s momentum, though valuation concerns persist amid its trillion-dollar market cap.

Shares of CSCO remained stable post-announcement, while NVDA’s stock faces volatility despite analysts raising price targets to $300. The broader tech sector continues to weigh high-growth potential against valuation risks.

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