Shares of Cisco Systems (CSCO) are rallying in after-hours trading on Wednesday after the company beat earnings expectations on both revenue and profit fronts, while also providing an upbeat outlook. Morningstar Equity Analyst William Kerwin joins Market Domination Overtime to discuss the company's performance and future prospects.

Kerwin characterizes Cisco Systems' earnings results as "generally positive," highlighting that the company's fiscal 2025 guidance suggests a return to growth, which he views as "positive." Addressing the recently announced job cuts, Kerwin says he's "not overly concerned with it," interpreting the move as a sign of the company's focus on profitability.

Regarding Cisco's AI initiatives, Kerwin believes the company is not "a true AI play." However, he anticipates "moderate success" for Cisco in AI networking infrastructure, though he cautions that this will likely be "a drop in the bucket compared to the rest of Cisco's business." Kerwin emphasizes that Cisco's strengths lie in "campus and on-premises networks" such as office buildings and campuses, particularly in Wi-Fi and other areas requiring "slower speeds."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Angel Smith