Cisco Stock Takes Hit as Software Revenue Falls Short

Cisco's latest earnings report has been met with a decline of 7.4% in its stock price, despite beating earnings expectations for five consecutive quarters.

The company saw significant growth in hardware sales, including a notable increase in AI orders worth $9.3 billion, which exceeded revised expectations.

However, the anticipated boost from software services failed to materialize, leading to concerns over future revenue growth estimates, which predict 16% revenue growth for the upcoming year.

Cerebras Systems, a newly public company, also reported mixed earnings following its IPO. The company's AI chip technology is gaining attention, but its earnings report introduced complexities due to the distinction between GAAP revenue and core revenue figures.