Cisco falls after 2027 revenue outlook tops expectations
Shares of networking equipment maker Cisco CSCO.O fell nearly 6% to $116.52 premarket.
The company forecast fiscal 2027 revenue above Wall Street expectations on Wednesday, signaling confidence that strong demand for its AI networking gear will continue to power growth.
Melius Research said the company faced a tough setup, as conservative guidance to leave room for future beats required forecasting slower growth.
"We think Cisco gets bought on the dip since networking has so many secular tailwinds," the brokerage added.
The company also beat fourth-quarter sales and profit estimates.
Twenty-seven analysts rate the stock "buy" on average; the median price target is $132, according to data compiled by LSEG.
Up to the prior day's close, the stock had risen nearly 61% year to date.
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