Cisco pops as tech giant raises full-year guidance, Q1 results surpass expectations (updated)
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Cisco Systems (NASDAQ:CSCO) shares rose nearly 5% in extended-hours trading after the networking giant reported fiscal first-quarter results that beat Wall Street expectations and offered strong guidance for the next quarter and rest of its fiscal year.
For the most recent quarter, the Chuck Robbins-led Cisco (CSCO) said it generated adjusted earnings of 86 cents per share on $13.64B in revenue. Included in that was $10.25B in product-related revenue and $3.39B in revenue attached to services. 
A consensus of analysts expected Cisco to earn 84 cents per share and $13.29B in revenue.
San Jose, California-based Cisco (CSCO) CFO Scott Herren said the company had more than $23B in annual recurring revenue and its product ARR grew 12%. 
Looking ahead, Cisco (CSCO) said it expects second-quarter revenue to grow between 4.5% and 6.5%, with earnings between 84 and 86 cents per share. Analysts were expecting sales growth of 4.2% and adjusted earnings of 85 cents per share. 
For the full-year, Cisco (CSCO) raised its revenue forecast, as it now expects sales to rise between 4.5% and 6.5% year-over-year, above its previous outlook of 4% to 6%. Analysts were anticipating revenue to grow 5.1%.
Cisco (CSCO) also raised its full-year adjusted earnings outlook, as it now expects sales to be between between $3.51 and $3.58 per share, compared to a previous forecast of $3.49 to $3.56 per share. 
Update: In addition to the strong results, Cisco (CSCO) said it would restructure its organization, including real estate. The plan, which is slated to start in the company's second-quarter, is expected to result in a pre-tax charge of roughly $600M consisting of severance and one-time termination benefits, as well as charges for real estate and other costs.
Roughly $300M of those charges will come in the second-quarter, $200M in the second-half of the year and the rest in the first-quarter of 2024.
Juniper Networks (JNPR) and Arista Networks (ANET) moved higher in extended trading following the results.
Cisco (OTCPK:CSOC) will host a conference call at 4:30 p.m. EST to discuss the results.

Last week, Cisco (CSCO) said it would open up a new advanced semiconductor design center in Barcelona, Spain as Europe looks to expand its semiconductor ecosystem.