Cisco Forecasts $15.56B Q3 Revenue as Shares Hit Record Highs
Cisco is forecast to report Q3 revenue of $15.56B with 10% year-on-year growth, though its legacy networking segment shows mixed results and new product lines have struggled post its $28B Kerplunk acquisition. Shares have climbed to record highs, pushing market cap near $400B as indicators show overbought conditions.
1. Q3 Revenue and Growth Outlook
Cisco anticipates third‐quarter revenue of $15.56 billion, reflecting roughly 10% year‐over‐year growth. The forecast underscores continued demand in enterprise networking and security solutions despite broader market headwinds.
2. Legacy Networking Segment Performance
Sales in Cisco’s traditional switching and routing business have produced mixed results, with some regions reporting flat to low‐single‐digit growth. This performance highlights persistent competition and slower refresh cycles among long‐standing customers.
3. Impact of Kerplunk Acquisition on New Products
Following the $28 billion Kerplunk deal, Cisco has struggled to integrate and scale key technologies, leading to underperformance in newly launched product lines. Integration costs and initial deployment challenges have weighed on margins and delayed expected revenue contributions.
4. Record Share Prices and Technical Signals
Cisco shares recently exceeded their April 2000 highs, driving market capitalization close to $400 billion. Technical indicators such as the relative strength index suggest the stock is overbought, raising concerns about potential near‐term pullbacks.