Cisco Stock Plunges 9% Despite Beating Earnings and Revenue Estimates

Cisco's stock took a sharp hit on Thursday, falling 9% despite the company beating quarterly earnings and revenue estimates.

The networking giant reported fourth-quarter revenue of $17.3 billion, up 18% year-over-year and ahead of analyst expectations of $16.8 billion.

Cisco's adjusted earnings came in at $1.22 per share, surpassing the estimated $1.17 per share.

The stock decline reflected a trend seen in this quarter's earnings season: even strong beats can disappoint if guidance falls short or if market expectations are already priced into shares.