What's Going On With Cisco Systems Stock Today?
Portfolio Pulse from Nabaparna Bhattacharya
Cisco Systems, Inc. (NASDAQ:CSCO) shares are trading higher in the premarket session after the company reported better-than-expected fourth-quarter revenue and earnings. Despite a 10% decline in total revenue, Cisco saw a 14% year-over-year growth in product orders and improved gross margins. The company also announced plans to cut around 7% of its global workforce, incurring up to $1 billion in pre-tax charges. Cisco aims to reallocate resources towards cybersecurity, cloud systems, and AI-related products.
August 15, 2024 | 12:45 pm
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Cisco Systems reported better-than-expected Q4 revenue and earnings, with a 14% growth in product orders and improved gross margins. The company plans to cut 7% of its workforce to focus on cybersecurity, cloud systems, and AI-related products.
Cisco's better-than-expected Q4 results and strategic shift towards high-growth areas like cybersecurity, cloud, and AI are likely to positively impact its stock price in the short term. The workforce reduction, while costly, is aimed at reallocating resources to these key areas.
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