Cisco Rallies After Upbeat Forecast Shows Spending Recovery
Is Cisco's Recovery a Sign of Tech Revival?
Cisco Systems Inc. saw its shares rise by about 5% in extended trading following a robust sales and profit forecast for the upcoming quarter. This positive outlook suggests a resurgence in customer investments in computer networks. The company anticipates sales between $13.4 billion and $13.6 billion for the fiscal fourth quarter, aligning closely with analysts' expectations.
The forecast reflects stability in demand, as noted by Cisco's CFO, Scott Herren. This comes after a period of fluctuating hardware purchases by corporate and telecommunications customers. Additionally, Cisco's strategic shift towards providing networking services and software, including the $28 billion acquisition of Splunk Inc., aims to reduce dependency on hardware sales and boost long-term service contracts.