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Cisco Systems Exceeds Expectations in Q2 Earnings Report
Cisco Systems (CSCO) has announced its financial results for the second quarter of fiscal 2024, impressively surpassing analysts’ projections and enhancing its outlook for the remainder of the year. This positive performance driven by robust demand has led to a notable increase in the company’s stock price, which rose significantly in after-hours trading on Wednesday.
The company’s revenue reached $14 billion, marking a 9% increase year-over-year, and exceeded the consensus forecast compiled by Visible Alpha. Alongside this revenue growth, Cisco reported adjusted earnings of $3.8 billion or 94 cents per share, compared to $3.5 billion or 87 cents per share in the same period last year, thus also exceeding anticipated earnings.
A significant contributor to this growth was the surge in orders related to artificial intelligence infrastructure, which surpassed $350 million in the quarter. This brought total AI-related orders to roughly $700 million for the first half of the fiscal year, indicating a strong market demand and positioning Cisco as a key player in this emerging technological landscape.
In a move to return value to its shareholders, Cisco’s board approved a $15 billion expansion of its stock repurchase program, further demonstrating confidence in the company’s financial health. Additionally, the quarterly dividend has been raised by 3% to 41 cents per share, reflecting the company’s commitment to rewarding its investors.
Looking forward, Cisco has upwardly revised its full-year revenue guidance, now projecting revenues between $56 billion and $56.5 billion, an increase from previous estimates of $55.3 billion to $56.3 billion. The company also anticipates adjusted earnings per share to fall between $3.68 and $3.74, up from prior expectations of $3.60 to $3.66.
As a result of these announcements, Cisco’s shares surged nearly 7% in after-hours trading. Over the past year, the company’s stock has appreciated approximately 24%, marking a significant recovery and growth period for the tech giant.
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