Cisco experiences fourth consecutive quarter of decreasing revenue.

• Cisco's quarterly results exceeded expectations, causing the company to raise its full-year revenue forecast.
• For the fourth consecutive quarter, revenue decreased by 5% compared to the previous year.

Despite revenue declining for four consecutive quarters, the company's results surpassed analysts' expectations. The stock dropped approximately 1% in extended trading.

Here's how the company did in comparison with LSEG consensus:

• Earnings per share: 91 cents adjusted vs. 87 cents expected
• Revenue: $13.84 billion vs. $13.77 billion expected

In the quarter ended Oct. 26, Cisco's revenue decreased by 6% from $14.7 billion to $13.9 billion, while net income dropped to $2.71 billion, or 68 cents per share, from $3.64 billion, or 89 cents per share, in the same quarter a year ago.

The revenue from networking dropped by 23% to $6.75 billion, which was slightly below the predicted $6.8 billion by analysts surveyed by StreetAccount.

Cisco's CEO, Chuck Robbins, announced on a Wednesday conference call that the company had received over $300 million in orders for artificial intelligence infrastructure from large-scale clients in the quarter. Additionally, server manufacturers such as and have been focusing on selling hardware that can aid clients in implementing generative AI.

"We have secured more design wins and are optimistic that we will surpass our $1 billion AI orders target from web-scale customers this fiscal year," Robbins stated.

Robbins stated that instead of canceling the deals, U.S. government agencies have postponed negotiations with Cisco.

During the quarter, Cisco acquired security startups DeepFactor and Robust Intelligence.

Cisco has raised its full-year guidance for adjusted earnings per share to $3.60 to $3.66 on $55.3 billion to $56.3 billion in revenue, an increase from its previous forecast of $3.52 to $3.58 in EPS and $55 billion to $56.2 billion in revenue. This guidance implies projected revenue growth of 3.3% at the midpoint of the range.

The revenue for the year was predicted to be $55.89 billion, resulting in adjusted earnings of $3.58 per share.

Cisco's stock has increased by 17% year to date, while the S&P 500 index has risen by approximately 26% during the same period.

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