Tiger Brokers

BUZZ-Cisco falls as margin miss, memory costs overshadow strong orders

Reuters
Feb 12
BUZZ-Cisco falls as margin miss, memory costs overshadow strong orders

** Cisco CSCO.O shares fall 8% premarket as margin miss overshadows strong demand

** Q2 adj. gross margin slipped to 67.5%, below 68.14% estimate, hit by soaring memory costs

** Analysts at Piper Sandler said "Component concerns overshadow a good qtr", adding that memory‑driven margin pressure and ongoing Security weakness kept the bar high, even as networking and AI infrastructure "executed extremely well"

** CEO Chuck Robbins said Cisco has lifted prices and tightened partner contracts to track faster memory‑cost swings, and expects margins to improve into FY27

** Cisco now expects FY26 revenue of $61.2–61.7 bln, helped by robust AI pipeline and early campus refresh activity

** AI orders surged to $2.1 bln, up from $1.3 bln last quarter

** YTD, stock up 11%

(Reporting by Rashika Singh in Bengaluru)

((Rashika.Singh@thomsonreuters.com;))

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.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10