Cisco Systems Inc. experienced a significant after-hours plunge of 5.32% on Wednesday, following the release of its fiscal second-quarter earnings report. The networking giant reported financial results that exceeded analyst expectations on both earnings and revenue, yet the stock moved sharply lower in extended trading.

The company posted adjusted earnings of $1.04 per share, beating the FactSet consensus estimate of $1.02 per share. Revenue for the quarter reached $15.3 billion, also surpassing Wall Street expectations of $15.11 billion. Cisco further raised its full-year outlook, now expecting adjusted earnings between $4.13 and $4.17 per share on revenue of $61.2 billion to $61.7 billion, up from previous guidance.

Despite these positive results, investors appeared to have wanted more from the company's guidance, particularly given the stock's strong performance over the past year with shares rising 37% and reaching record highs. The after-hours decline suggests that market expectations may have been even higher, or that some profit-taking occurred following the earnings announcement as the company continues to position itself for growth in the AI infrastructure market.