Cisco Systems (CSCO) reported first-quarter financial results that beat analysts’ expectations and raised its full-year forecast, despite falling revenue.

The networking equipment provider reported first-quarter net income of $2.7 billion, or 68 cents per share, down from $3.6 billion, or 89 cents per share, a year earlier. early, but higher than analysts’ projections. Cisco generated revenue of $13.8 billion, down 6% year over year and roughly in line with analyst consensus from Visible Alpha.

For the second quarter, Cisco expects revenue between $13.75 billion and $13.95 billion, compared to an estimate of $13.8 billion.

Cisco Improves Full-Year Outlook

The company raised its full-year revenue forecast to between $55.3 billion and $56.3 billion, up from $55 billion to $56.2 billion previously. He also raised his earnings per share projection between $2.26 and $2.38, compared to $1.93 to $2.05.

Results come after Cisco eliminated around 7% of its workforce a quarter ago, as part of a pivot to higher growth areas like cybersecurity and artificial intelligence. The move follows a 5% reduction in February that affected approximately 4,250 employees.

Cisco shares were little changed in extended trading Wednesday after the release. They have gained more than 17% for 2024 so far through Wednesday’s close.