Cisco Shares Rise as Investors Eye AI Networking Demand Ahead of Q4 Earnings

Cisco Systems shares are trading higher ahead of its fourth-quarter earnings release, as investors look for signs that the networking equipment giant can maintain its string of earnings beats and deliver strong forward guidance.

Wall Street analysts expect Cisco to report adjusted earnings of $1.17 per share on revenue of approximately $16.82 billion, which would represent a new quarterly revenue record and surpass the previous high of $15.84 billion in the fiscal third quarter.

Cisco's management had previously forecast revenue between $16.7 billion and $16.9 billion for the fourth quarter, indicating another quarterly high, alongside non-GAAP earnings of $1.16 to $1.18 per share, a non-GAAP gross margin of 65.5% to 66.5%, and an operating margin of 34% to 35%.

The company has already raised its full-year guidance following its third-quarter results, expecting fiscal-year revenue of $62.8 billion to $63 billion and adjusted earnings of $4.27 to $4.29 per share, up from previous projections of $61.2 billion to $61.7 billion and adjusted earnings of $4.13 to $4.17 per share.

Cisco shares have gained nearly 60% so far this year, putting the company under heightened scrutiny ahead of the results, with investors paying close attention to management commentary on AI-related networking demand and the company's ability to demonstrate sustained growth in its next-generation infrastructure business.