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Slowing cloud demand has in recent quarters muddied the outlook for suppliers of hardware such as switches and routers, which power computer networks and the internet. Rival Juniper Networks (NYSE:JNPR) also offered a weak forecast last month.
Cisco (NASDAQ:CSCO) expects full-year revenue to be between $57 billion and $58.20 billion, compared with analysts’ average estimate of $58.38 billion, according to Refinitiv data.
The company has also tried to reduce its dependence on one-time sales of expensive hardware by pushing more of its software services, which are more lucrative as they bring in recurring payments.
It forecast annual adjusted earnings per share of $4.01 to $4.08, compared with analysts’ estimate of $4.04.
Shares of the California-based company fell more than 2% in extended trading. The stock has risen nearly 12% so far this year, but lagged the wider, AI-fueled rally in the U.S. market.
Cisco, which supplies to companies such as telecom firm AT&T (NYSE:T) and auto retailer AutoNation (NYSE:AN), reported fourth-quarter revenue of $15.20 billion, compared with analysts’ estimate of $15.05 billion.
