Cisco Earnings Boost and AI Outlook
"All right, let's go to one name that we talked about a lot today. Um actually 24 hours ago they were reporting their earnings after the close, but today we got market reaction and that is Cisco. Yeah, something ironic about talking about Cisco at a time when everyone is uh comparing this time to the 1999.com bust, but that stock is actually was doing well today. Shares gained after it boosted its 2026 forecast showing progress in its effort to capture AI spending. Uh the company is of course the top maker of machines that run computer networks and the internet as we know uh from the internet boom. It now expects sales of as much as $61 billion in the fiscal year ending in July. That is $1 billion more than previously expected. Uh the stock rose 4.6% 6% today and it's up about 31% year to date. So a really solid run for this company that obviously was such a big focus."
The discussion highlights Cisco's strong post-earnings performance, including an upgraded 2026 forecast and increased fiscal year sales expectations. The upbeat market reaction, with notable percentage gains and a 31% year-to-date rise, reinforces the positive outlook amid the AI spending narrative.
Cisco Systems Ups Forecast Driven by AI Demand
"On to the network equipment giants. Cisco systems boosting the forecast uh showing progress in their effort to capture more AI spending. The company this is the top maker machines that run computer networks and the internet. They now expect sales of as much as $61 billion in the fiscal year that ends what? In July. Uh that's about a billion more than they previously expected, higher than Wall Street estimates. But Cisco also increasing its earnings forecast which uh again topped analyst predictions. The uh CEO there Chuck Robbins says the need for secured networking in AI is helping fuel demand."
The speakers discuss Cisco's upward revision in sales and earnings forecasts, attributing the boost to increased AI spending and the growing need for secure networking. This commentary underlines Cisco's strong positioning in an evolving tech landscape.
Cisco AI Upside Commentary
"Cisco going to report earnings any moment. That stock as Katie mentioned earlier, an outperformer in today's session. We're looking for that AI payoff because the stock is getting very close near its all-time high."
Commentary on Cisco emphasizes an upcoming earnings report and the potential for an AI-driven boost, noting that the stock is near its all-time high and positioned as an outperformer.
Cisco Benefits from AI Demand and Upgraded Forecasts
"ticker CSCO another AI play. It raised its forecast for 2026 and this also beat Wall Street's expectations. It's one of those legacy tech companies that's been trying to benefit from the whole AI boom and right now it's been trying to upgrade its chips and gear so that they can handle complicated AI task. Uh I think the results kind of show that analysts are bullish on the company and that and they say that the AI demand and these new products would boost uh Cisco's growth while their networking market matures. Yeah, I mean it's really interesting. We've seen this stock Cisco um definitely bounce back this year. a lot of expectations, a lot of different moves. And it's not too far from its all-time high that we saw back what before the dot boom bust, if you will, or during the com boom and then bust. And so, we'll see whether we get there. But right now, that stock is up 7% in the aftermarket."
The commentary on Cisco (CSCO) details how the company is leveraging the AI boom by upgrading its chips and gear to handle complex AI tasks. With an improved forecast for 2026 and beating Wall Street expectations, the company has bounced back significantly, as evidenced by a 7% rise in aftermarket trading.
Cisco's Strong Financials and AI Catalyst
"Cisco number two on my list. Number two in the S&P 500, ticker CSCO right now up 4.4% trading at the highest level since March 2000. This comes after better than expected financials. AI AI AI looking at first quarter networking revenue bringing in the most revenue for the company including those the gear that it produces for AI data centers above expectation at 7.77 billion while Wall Street was closer to 7.5 billion. Strong financial forecast so really continuing to see pretty much anything that either makes components for data centers or benefits on the back of that."
The insight emphasizes Cisco's solid performance, noting a 4.4% gain and record highs since March 2000 driven by strong Q1 networking revenue and AI-related products. The upbeat commentary underscores the company's ability to exceed expectations and benefit from data center demand.
Cisco Forecast Upgrade Driven by AI Networking Demand
"Onto the network equipment giant Cisco Systems, boosting the forecast, showing progress in their effort to capture more air spending. The company, this is the top maker machines that run computer networks of the Internet. They now expect sales of as much as $61 billion in the fiscal year. That ends well in July. That's about a billion more than they previously expected, higher than Wall Street estimates are. Cisco also increasing its earnings forecast, which again topped analysts predictions. The CEO there, Chuck Robbins, says the need for secure networking in A.I. is helping fuel demand."
Cisco is benefiting from improved forecasts and a boosted earnings outlook, driven by demand for secure networking in the AI space. The updated sales expectations and earnings forecast, which beat prior estimates, suggest a positive trend for the company over the current fiscal year.
Cisco's Transition to AI: Earnings in Focus Amid Evolving Strategy
"You're also you're also looking at another big tech name. >> Well, not quite so big. It once was big. >> Exactly. Shall we say it's an old school tech name in given the context of today's AI boost and this is Cisco and we're looking at shares of ticker for that is CSCO and shares up slightly like about half a percent and we're looking ahead to their earnings after the bell, scarlet. You know, the expectation is that first quarter EPS will rise 5.8% and revenue is projected to climb uh 5.3% for fiscal 2026 and then decelerate modestly over the next few years."
The discussion centers on Cisco's modest gains and upcoming earnings, noting a cautious outlook as the company works to catch up in the AI space despite a solid performance track record.
Cisco's Unified Edge Innovation and UBS Upgrade Catalyst
"Cisco is announcing a new all-in-one product to help retail stores, healthc care facilities, uh, and factories incorporate artificial intelligence with the use of a single rack of equipment. This technology is called unified edge. I'm looking at the stock right now. It's up about 1.7% on this news. Uh basically this new technology combines chip storage, networking and security software and relies on Cisco products for this but it lets customers actually choose their own chips so they can go with Nvidia or Intel here. Right now basically most companies are focused on training AI models or running them. But Cisco and other companies are betting that businesses will need equipment to run AI tasks locally and they won't have these skilled workers on site to help them."
Cisco is rolling out a unified edge product that bundles key technologies to support local AI tasks. The commentary highlights a UBS upgrade with a price target hike from 74 to 88, supporting a bullish view on multi-year growth potential driven by AI infrastructure demand.
Cisco as a Weighing Machine Example
"My favorite example in the world, and I\"ve loved this one for so long. Cisco system. Cisco was the Nvidia of 2000. It hit a high of $82 a share back in 2000 and has not hit that mark since. Guys, guess what? Revenue is up 4x and profits up 5x since that time. And here\"s what\"s interesting: from one point to another, the stock went up 10x and profit climbed about 10x. Is that coincidence? No."
The speaker uses Cisco as an illustration of how stock prices, over the long term, reflect fundamental value rather than short-term hype. Despite not reaching its previous high, Cisco\"s significant revenue and profit growth reaffirm its long-term value, supporting the idea that fundamentals eventually prevail over market noise.