Cisco's performance exceeded Wall Street expectations, but still fell short of investors' hopes.

Cisco Systems' quarterly revenue and profit both exceeded expectations but fell short of investors' appetite, which had been heightened by the robust performance of the previous quarter. The company stated on Wednesday that revenue for the fourth fiscal quarter ending in July increased by 18% year-on-year to reach $17.3 billion. Excluding certain items, earnings per share were reported at $1.22. Analysts had previously forecasted revenue of $16.8 billion and earnings per share of $1.17. The stock closed at $123.88 in New York, then fell about 5% in after-hours trading. Cisco's shares rose nearly 25% over the past three months, as investors believed its new focus on artificial intelligence would drive stronger sales growth. The world's largest network equipment manufacturer, Cisco has been undergoing restructuring in hopes of securing more contracts amid a global surge in AI data center construction. This new strategy has helped the company attract more customers. However, it is also facing increasingly fierce competition from companies like Broadcom and HP, and investors have high expectations for profits from its AI-related products. The results for the fourth fiscal quarter have dimmed Cisco's strong outlook for future revenue and profits. In its announcement, the company projected that revenue for the first fiscal quarter ending in October would be between $18 billion and $18.2 billion. The average analyst estimate was $16.8 billion. Excluding certain items, earnings per share are expected to be in the range of $1.32 to $1.34, also higher than the market expectation of $1.17. Industry research analyst Woo Jin Ho wrote in a report, "We expect the momentum in artificial intelligence to remain strong."