Cisco CEO Downplays Weaker Revenue Guidance, Points to Profitability
Cisco CEO Chuck Robbins calls the second-quarter revenue dip seasonal and praises profitability. Per Stocktwits, shares fell over 5% in morning trade.
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what happened
Cisco CEO Chuck Robbins told CNBC that the dip in second-quarter revenue guidance is routine. He said investors are looking at the wrong margin: gross margin is lower, but operating profitability remains strong. The company guided to between $18.0 billion and $18.2 billion, below the first-quarter revenue of $18.5 billion.
Robbins linked the decline to seasonality, since the first quarter usually benefits from shipments tied to orders booked late in the prior fiscal year. He also pointed to 21% growth in product orders, with networking orders up 28%. Adjusted operating margin came in at 37.8%.
On Nvidia, Robbins said the impact on Cisco would be limited. According to Stocktwits, the stock fell more than 5% in morning trade.
why it matters
The market is reacting to guidance below the first-quarter level and to questions about how sales to large cloud providers will weigh on margins. Revenue and adjusted earnings beat analyst estimates, so the picture is mixed.
market impact
Cisco shares: weak revenue guidance pressures the stock, while strong profit partly offsets it
- Cisco shares mixed — weak revenue guidance against strong profit and orders
tags
instruments
sources
- Cisco CEO Shrugs Off Concerns On Revenue Guidance Dip, Says ‘Profitability Of The Business Is Incredible’ — Stocktwits, 13 November 2026 at 16:32 UTC
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