Cisco reported better-than-expected quarterly results on Wednesday, but the stock dropped about 7% in extended trading as earnings guidance for the current period only met estimates.

Here’s how the company did in comparison with LSEG consensus:

• Earnings per share: $1.04 adjusted vs. $1.02 expected
• Revenue: $15.35 billion vs. $15.12 billion expected

Cisco’s revenue grew about 10% from $14 billion a year earlier, according to a statement. Net income increased to $3.18 billion, or 80 cents per share, from $2.43 billion, or 61 cents per share, in the same quarter a year ago. The adjusted figure excludes stock-based compensation costs.

For the current period, Cisco expects $1.02 to $1.04 in adjusted earnings per share and $15.4 billion to $15.6 billion in revenue. Analysts polled by LSEG were looking for $1.03 per share and $15.18 billion in revenue.

Investors have been looking for Cisco to play a more central role in the artificial intelligence boom, which has lifted chipmakers and providers of other data center technologies. Cisco is seeing some growth acceleration, reporting $2.1 billion in AI infrastructure orders from hyperscalers during the quarter.

Cisco’s core networking revenue increased 21% from a year earlier to $8.3 billion. Analysts polled by StreetAccount were looking for $7.9 billion.

During the quarter, Cisco said it would provide products for an AI infrastructure project in Saudi Arabia alongside Advanced Micro Devices. Cisco also announced the launch of a networking switch that contains an Nvidia chip.

For the 2026 fiscal year, Cisco is targeting $4.13 to $4.17 in adjusted earnings per share and $61.2 billion to $61.7 billion in revenue, which implies 8.5% growth. The LSEG consensus showed earnings of $4.12 per share, with $60.74 billion in revenue.

Executives will discuss the results on a conference call with analysts starting at 4:30 p.m. ET.

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