Overview
- Cisco, which reports fiscal third-quarter results after the close Wednesday, is expected to post $15.6 billion in revenue and $1.03 in earnings per share.
- Analysts see about $8.44 billion from the networking division, a 19% jump year over year as cloud giants build AI data centers that need more switching and optical gear.
- Gross margin is the key watch, with consensus at 66.2% versus 68.6% a year ago after a February 12 shortfall pushed the stock down 12%.
- Options traders, citing Wednesday's report, are pricing roughly an 8% swing in the shares in either direction.
- UBS’s David Vogt points to strong data-center switching and optical demand and says AI hyperscaler orders could top $1 billion this quarter.