1026 GMT - Cisco Systems stock tumbles 8% premarket as investors fear the impact of rising memory costs. The maker of artificial-intelligence hardware relies on memory for its products, but rising costs linked to booming AI data-center demand are weighing on the company's profitability. Gross margins tightened by 1.2% to 67.5% in the second quarter, the company said, a trend that it expects to continue. The company's chief financial officer Mark Patterson said memory costs were the reason for squeezed margins. Cisco announced revenue of $15.3 billion for the quarter, ahead of consensus estimates.(josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
February 12, 2026 05:26 ET (10:26 GMT)
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