Cisco Systems (CSCO) stock surged 5.02% in pre-market trading on Thursday, following the company's impressive third-quarter earnings report and raised full-year guidance. The networking giant's performance was bolstered by growing demand for its AI-related products and services.
Cisco reported better-than-expected fiscal third-quarter adjusted earnings as revenue rose 11% from a year earlier to $14.15 billion. The company also raised its fiscal-year revenue outlook to $56.5 billion to $56.7 billion, up from a prior forecast of $56 billion to $56.5 billion. CEO Chuck Robbins attributed the strong performance to AI-driven momentum, stating, "The momentum we are seeing with AI is fueled by the power of our secure networking portfolio, our trusted global partnerships, and the value we bring to our customers."
Analysts have responded positively to Cisco's results, with several firms raising their price targets. Wells Fargo upgraded Cisco to Overweight from Equal Weight, citing "AI momentum" and setting a new price target of $75. Other firms, including JP Morgan, Morgan Stanley, and Barclays, also raised their price targets for the stock. The company's strategic positioning in the AI market, particularly its partnership with Humain, Saudi Arabia's state-backed AI company, is seen as a major long-term growth opportunity.
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