Cisco Surpasses Estimates As It Finally Gets Some AI Action Despite Steepest Revenue Drop Since 2009
Portfolio Pulse from Upwallstreet
Cisco Systems Inc (NASDAQ:CSCO) reported fiscal Q3 results surpassing Wall Street estimates despite a 13% revenue drop, the steepest since 2009. The company completed a $28 billion acquisition of Splunk, boosting its AI and cybersecurity capabilities. Cisco's stock rose 8% in extended trading.
May 20, 2024 | 1:45 pm
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NEGATIVE IMPACT
Cisco's acquisition of Splunk enhances its cybersecurity offerings, increasing competition for CrowdStrike.
The acquisition of Splunk by Cisco strengthens its position in cybersecurity, potentially impacting CrowdStrike's market share.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Cisco's acquisition of Splunk positions it as a stronger competitor to Palo Alto Networks in the cybersecurity space.
Cisco's acquisition of Splunk enhances its cybersecurity capabilities, potentially increasing competition for Palo Alto Networks.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Cisco reported better-than-expected Q3 results despite a significant revenue drop. The $28 billion acquisition of Splunk enhances its AI and cybersecurity capabilities. Stock rose 8% in extended trading.
Cisco's better-than-expected earnings and the strategic acquisition of Splunk, which enhances its AI and cybersecurity capabilities, are positive indicators. The stock's 8% rise in extended trading reflects investor confidence.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Cisco's expanded partnership with Microsoft aims to enhance digital transformation solutions for customers.
The expanded partnership between Cisco and Microsoft is likely to benefit both companies by offering improved solutions to customers.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30