Cisco Cuts Full-Year Forecasts Amid Slowdown in New Orders

Shares tumble as customers focus on implementing products, impacting new orders and prompting a shift towards recurring software offerings.

Cisco Systems has cut its full-year revenue and profit forecasts due to a slowdown in new product orders.
The company's shares fell more than 12% after the announcement, potentially wiping out over $25 billion in market value.
Cisco attributes the slowdown to customers focusing on installing and implementing products in their environments.
The company has been trying to diversify from one-time purchases of expensive equipment to more recurring software offerings, such as cybersecurity packages.
Cisco had previously agreed to buy cybersecurity firm Splunk for about $28 billion in its biggest-ever deal.