Cisco Systems ( (CSCO) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Cisco Systems’ stock leaped after the company posted impressive fiscal second-quarter results that beat Wall Street’s expectations. The earnings per share reached $0.94, outperforming the predicted $0.91, while revenue hit $13.99 billion, surpassing the anticipated $13.87 billion. This positive performance is driven by a strong demand for AI infrastructure, leading to significant orders. Cisco also shared an encouraging outlook for FY25, expecting higher earnings and revenue than previously estimated. The company’s growth is further supported by its networking and security divisions, notably boosted by the acquisition of Splunk. In response, analysts are adjusting their price targets due to increasing data center needs and strategic moves in the tech market, though some warn of potential impacts from reduced federal spending. Cisco reinforced its positive stance by announcing a 3% dividend increase and a $15 billion enhancement to its share repurchase program.
More about Cisco Systems
YTD Price Performance: 6.17%
Average Trading Volume: 19,910,438
Technical Sentiment Consensus Rating: Sell
Current Market Cap: $250.2B
For further insights into CSCO stock on TipRanks’ Stock Analysis page.
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