(Reuters) -Cisco Systems projected annual revenue below market estimates on Wednesday, in a sign that an uncertain economic outlook was weighing on demand at one of the biggest makers of networking equipment.
Slowing cloud demand has in recent quarters muddied the outlook for suppliers of hardware such as switches and routers, which power computer networks and the internet. Rival Juniper Networks also offered a weak forecast last month.
Cisco expects full-year revenue to be between $57 billion and $58.20 billion, compared with analysts’ average estimate of $58.38 billion, according to Refinitiv data.
The company has also tried to reduce its dependence on one-time sales of expensive hardware by pushing more of its software services, which are more lucrative as they bring in recurring payments.
It forecast annual adjusted earnings per share of $4.01 to $4.08, compared with analysts’ estimate of $4.04.
Shares of the California-based company fell more than 2% in extended trading. The stock has risen nearly 12% so far this year, but lagged the wider, AI-fueled rally in the U.S. market.
Cisco, which supplies to companies such as telecom firm AT&T and auto retailer AutoNation, reported fourth-quarter revenue of $15.20 billion, compared with analysts’ estimate of $15.05 billion.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)
