Cisco beats on earnings, shares rise slightly

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Growth has been tepid at Cisco, with most of the growth in enterprise IT spending going towards the big cloud vendors.

77 cents per share, excluding certain items, vs. 76 cents per share as expected by analysts, according to Refinitiv.Cisco remains the dominant player in the data center switch market, but the company has for years been mired in slow growth because the bulk of new spending in IT is going to the large cloud vendors rather than the legacy hardware manufacturers.

"I am incredibly proud of the innovation our teams continue to drive," CEO Chuck Robbins said in a statement. "I am confident in our long-term growth opportunities as we help our customers build out the networks for the future." Cisco's stock has gained just 5% in the past year, trailing the nearly 22% gain for the S&P 500 and even further behind the performance of Amazon, Microsoft and Alphabet.

 

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