Cisco Systems Tumbles Premarket as Traders Fear Memory Shortage -- Market Talk
Dow Jones
3 hours ago
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)
Copyright (c) 2026 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.