Hua Er Jie Jian Wen·2025-08-14 00:38Core Viewpoint - Cisco reported a quarterly earnings report that slightly exceeded Wall Street expectations, with a notable surge in AI infrastructure orders, indicating a strong growth opportunity in this sector [1][5][9] Financial Performance - For Q4, adjusted earnings per share were $0.99, slightly above the expected $0.98, while revenue reached $14.7 billion, a year-over-year increase of 8%, surpassing the forecast of $14.62 billion [5] - Net profit for the quarter was $2.82 billion, reflecting a 31% year-over-year growth [5] - The company's guidance for fiscal year 2026 includes revenue projections of $59 billion to $60 billion and adjusted EPS between $4.00 and $4.06, aligning closely with analyst expectations [8] Business Segment Performance - The networking business showed strong performance with revenue of $7.63 billion, a 12% year-over-year increase, exceeding analyst expectations of $7.34 billion [6][5] - Conversely, the security business underperformed, generating $1.95 billion in revenue, which, despite a 9% year-over-year growth, fell short of the $2.11 billion market expectation [7][5] AI Strategy and Outlook - Cisco's AI infrastructure orders exceeded $2 billion for fiscal year 2025, more than double the initial target of $1 billion, with $800 million in AI orders coming from network giants in Q4 alone [5][9] - CEO Chuck Robbins emphasized the significant opportunity presented by AI, asserting that it is not a fleeting trend [1][9] - However, there are concerns regarding the sustainability of this growth, particularly if capital expenditure from cloud giants slows down [11][9] Market Sentiment - Despite the positive earnings report, Cisco's stock fell by 2% in after-hours trading, reflecting investor disappointment over results that were seen as "good but not outstanding" [1] - The stock has risen 19% year-to-date, outperforming the S&P 500's 10% increase, leading to profit-taking pressures [1]