Shares in Cisco (CSCO) slid 7.7% in pre-market trading on Thursday, after the networking equipment provider’s guidance fell short of expectations.
In second-quarter results released on Wednesday, Cisco (CSCO) said that revenue grew 10% year-on-year to $15.3bn, topping estimates of $15.1bn. Earnings per share (EPS) came in at $0.80 in the second quarter, also beating estimates of $0.74 per share, according to S&P Global Market Intelligence.
In terms of outlook, Cisco (CSCO) raised its for the year to EPS of $3.00 to $3.08 on revenue of $61.2bn to $61.7bn. However, this was below analyst expectations for EPS of $3.12 on revenue of $62.1bn.
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Mark Patterson, chief financial officer (CFO) of Cisco, said: “In Q2, we delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance and puts us on track to deliver our strongest revenue year yet in fiscal 2026.”
“Operating margin was also above the high end of guidance, as we continue to drive profitability by exercising financial discipline,” he said. “We see strong, broad-based demand for our technology solutions and remain focused on capturing the significant opportunities we see ahead.”
Fast food giant McDonald’s (MCD) also reported on Wednesday, though shares were little changed in pre-market trading, despite the company beating estimates on the top and bottom lines.
McDonald’s (MCD) reported fourth quarter revenue of $7.01bn (£5.13bn), topping expectations of $6.83bn. Adjusted EPS came in at $3.12, which was also ahead of estimates of $3.04.
For the year, revenue grew by 2% on a constant currency basis to $26.9bn, while EPS was up 4% at $11.95.
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Global comparable sales increased by 5.7% in the fourth quarter and 3.1% over 2025.
Chris Kempczinski, CEO of McDonald’s (MCD), said: “By listening to customers and taking action, we have improved traffic and strengthened our value & affordability scores.”
“That focus helped increase global systemwide sales by 8% and delivered strong comp sales growth across all segments this quarter,” he said. “The momentum we’ve built reinforces the progress we’ve made with our strategy and has earned us the right to look forward together as a system.”
Shares in marketing platform AppLovin (APP) were down nearly 6% in pre-market trading on Thursday, as it appeared that an earnings beat was not enough to ease concerns about AI-related disruption.