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StocksMedium•13 February 2026•

1 min read

Cisco Shares Slump Over 7% Post-Earnings: Gross Margin and Guidance Weigh on Investors

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Cisco stock (NASDAQ: CSCO) experienced a significant decline of over 7% in pre-market trading on Thursday, despite the company reporting robust financial results. The technology giant announced double-digit revenue and profit growth for its latest quarter, surpassing Wall Street's expectations. However, analysts attributed the stock's slump to a softer-than-anticipated gross margin. Furthermore, the company's future guidance, which was only in line with forecasts, failed to reassure the market. This reaction highlights investor sensitivity to profitability metrics and future outlook over past performance, leading to selling pressure on the stock.