Cisco Systems (CSCO) Shares Gap Up After Strong Earnings

💡 Cisco's robust earnings sparked a sharp gap up in its shares.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Cisco Systems (CSCO) shares have gapped up following its strong earnings report. $CSCO revenue growth was driven by a surge in sales of its networking equipment and software services.

Earnings Beat Expectations

Cisco Systems' quarterly earnings beat expectations, with the company reporting a 12% increase in revenue to $13.6 billion. The company's net income rose to $4.1 billion, or $0.87 per share, compared to $3.5 billion, or $0.76 per share, in the same period last year. Guidance for the current quarter was also raised to $13.7 billion to $14.1 billion.

Market Reaction

Markets have reacted positively to Cisco's strong earnings report, with the company's shares gapping up by 5% in pre-market trading. The stock has also received a buy rating from several analysts, who citing the company's solid revenue growth and expanding profit margins.

Analysts' Take

Analysts at Morgan Stanley and Goldman Sachs have upgraded their price targets for Cisco Systems, citing the company's strong earnings and revenue growth. The analysts' target price for the stock has been raised to $60 and $65 per share, respectively.

What It Means for Investors