Cisco Systems reported better-than-expected earnings and revenue in its second fiscal quarter. However, the company warned of profit margin pressure due to rising prices for memory chips used in computer networking products. Despite this, Cisco’s stock price fell after the announcement.
The company’s strong performance was a surprise to some investors, who had expected weaker results. Cisco’s stock has gained 37% over the past year, and many had hoped that would continue. However, the news about profit margin pressure caused concern among traders.
Other hardware makers also saw their stocks fall on the news, indicating a broader market trend against tech companies. Despite this, some analysts are optimistic about Cisco’s prospects for long-term growth.
Source: https://www.investors.com/news/technology/cisco-stock-cisco-earnings-q42025