Cisco raises full-year results forecast, shares rise
FILE PHOTO: A man passes under a Cisco logo at the Mobile World Congress in Barcelona, Spain February 25, 2019. REUTERS/Sergio Perez/ File Photo
(Reuters) - Cisco Systems raised its annual revenue and profit forecasts on Wednesday, betting on steady demand from cloud customers for its networking equipment, driven by the artificial intelligence boom.
Shares of the San Jose, California-based company rose 4% in extended trading.
Cisco, with products such as ethernet switches and routers, has benefited from a boom in data center investment, as technology giants have ramped up capital expenditure to meet the computing power needed to run generative AI applications.
The company expects its revenue to be between $56.5 billion and $56.7 billion for fiscal 2025, compared with its prior forecast of $56 billion to $56.5 billion.
Analysts, on average, expect $56.47 billion, according to data compiled by LSEG.
Cisco now expects to post annual adjusted profit between $3.77 and $3.79 per share, compared to its prior projection of $3.68 to $3.74 apiece.
(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)
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