Cisco Systems Looks Optimistically at the Current Quarter Amid the AI Boom and New IT Investments, Slightly Raising the Annual Forecast. The Network Equipment Supplier Expects Revenue of $13.75 to $13.95 Billion in the Second Quarter of the Fiscal Year (Ending in January), Which Would, at Best, Mark an Increase After a Year Without Growth. Analysts Had Previously Expected a Figure at the Lower End of This Range.

Despite the positive forecast, Cisco slightly lagged behind market expectations. The stock listed on the Dow Jones Index, which had recovered from about 45 to almost 60 dollars in recent months, slightly declined in pre-market NASDAQ trading and temporarily fell by 0.34 percent to 58.98 dollars.

In the first quarter of the fiscal year, revenue decreased by six percent to $13.8 billion. Profits also suffered, dropping by a quarter to $2.7 billion. For the full year, Cisco now forecasts revenues of $55.3 to $56.3 billion, narrowly missing analysts' expectations.

Cisco is considered a barometer for IT spending in the economy and has struggled with restrained customer investments in recent years. The company's largest single customer is the US government, and according to CFO Scott Herren, the change of power in the White House could delay some government projects. However, once a new budget is passed, demand is expected to pick up quickly.

Driven by the hype around artificial intelligence and the need for advanced networking devices essential for AI infrastructures, Cisco hopes for stable demand development.