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Cisco (CSCO) kicked off fiscal 2025 with better-than-expected first-quarter results, beating Wall Street’s revenue and earnings estimates. Despite this, its stock dipped in extended trading due to cautious guidance on future artificial intelligence (AI)-related orders. While management reaffirmed its goal of over $1 billion in AI orders this fiscal year, investors had hoped for more ambitious targets, given Cisco’s strong position in the AI space.
Nonetheless, Cisco’s earnings report revealed several strengths that make it an attractive long-term investment.