Cisco Systems (CSCO) shares are rising in after-hours trading on Wednesday after the company beat expectations on both revenue and profit and provided an upbeat outlook. Morningstar equity analyst William Kerwin joins Market Domination Overtime to discuss the company's performance and future prospects.
Kerwin called Cisco Systems' results “broadly positive” and highlighted that the company's fiscal 2025 outlook signals a return to growth, which he sees as “good.” As for the recently announced job cuts, Kerwin said he's “not that worried” about them, interpreting the moves as a sign of the company's focus on profitability.
Regarding Cisco's AI initiatives, Kerwin believes the company is not a “true AI company.” However, he expects Cisco to have “moderate success” with its AI networking infrastructure, though he cautions that this will likely be “a fraction of what Cisco does.” Kerwin emphasized that Cisco's strengths lie in “campus and on-premise networks,” such as office buildings and campuses, particularly in areas that require Wi-Fi and “lower speeds.”
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This post was written by Angel Smith
