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Cisco Forecasts Strong Q1 Revenue as AI Drives Networking Demand

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Cisco Systems expects first-quarter revenue between $14.65 billion and $14.85 billion, exceeding Wall Street estimates, fueled by surging demand for networking equipment driven by artificial intelligence. Hyperscale cloud and enterprise AI investments are boosting orders, with Cisco reporting over $2 billion in AI infrastructure sales for fiscal 2025, more than double its target. Networking product orders rose in double digits across webscale infrastructure, enterprise routing, switching, industrial IoT, and servers. Cisco is also partnering with state-backed AI initiatives in Saudi Arabia and Bahrain. CEO Chuck Robbins expects AI-driven opportunities to further expand in fiscal 2026.

UK’s Bytes Technology Shares Plunge 27% After Profit Warning on Restructuring Delays and Market Pressures

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Shares of Bytes Technology (BYIT.L), a UK-based IT firm, tumbled over 27% on Wednesday following a profit warning. The company announced that its operating profit for the first half of fiscal 2026 would be marginally lower than expected, citing delayed customer decisions and extended internal restructuring readjustments as key factors.

Bytes attributed the weak trading in the early months of the year to macroeconomic challenges, which led many corporate clients to defer purchasing decisions. The firm is transitioning from a generalist sales approach to specialized, customer segment-focused teams—a shift that has taken longer to implement than initially anticipated.

Additional pressure came from changes to Microsoft’s enterprise agreement program, which reduced certain transactional incentives. These changes particularly impacted the first half of the fiscal year due to a high volume of contract renewals in March and April.

On Wednesday, Bytes reported that gross profit for the first half of fiscal 2026 is expected to remain flat, contrasting with its May guidance, which projected double-digit gross profit growth and high single-digit operating profit growth for the year. For comparison, the company posted an operating profit of £35.6 million ($48.8 million) in the first half of fiscal 2025.

The stock dropped to 369 pence at one point—the lowest since April 2023—before recovering slightly to 391.4 pence by 08:00 GMT. Analysts from Jefferies noted that the cautious AGM update, which downgraded growth expectations, may have surprised investors.

Oracle Shares Hit Record High as AI Cloud Demand Boosts Revenue Outlook

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Oracle shares surged 14% on Thursday, crossing the $200 mark for the first time, after the company raised its annual revenue forecast fueled by strong demand for its AI-related cloud services.

Despite ongoing geopolitical tensions and warnings from analysts about potential impacts of U.S. President Donald Trump’s tariffs on Big Tech’s AI investments, confidence in the software sector remains robust.

Oracle recently announced a joint venture called Stargate aimed at providing large-scale computing power to OpenAI, positioning itself as a key player in AI infrastructure.

Michael Ashley Schulman, partner at Running Point Capital Advisors, described Oracle’s transformation as moving from a “stodgy” image to a “cloud-native mage” competing in a fiercely contested market.

For fiscal 2026, Oracle expects total revenue to reach at least $67 billion, according to CEO Safra Catz during a post-earnings call.

The company reported cloud services quarterly revenue growth of 14% to $11.7 billion, with overall revenue of $15.9 billion surpassing estimates of $15.59 billion. Following these results, at least nine brokerages have raised their price targets.

Oracle’s forward price-to-earnings ratio stands at 25.86, lower than rivals Microsoft’s 31.34 and Amazon’s 31.80. Year-to-date, Microsoft’s stock has risen 12.16%, while Amazon’s has fallen 2.8%.

Analysts at Piper Sandler noted that Oracle is experiencing a wave of enterprise popularity unseen since the internet boom of the late 1990s.

At the close, Oracle shares were trading at $201.38.