Cisco slumps after cutting annual profit, revenue forecasts

FILE PHOTO: The Cisco logo is displayed, during the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain March 1, 2023. REUTERS/Nacho Doce/File Photo

(Reuters) -Cisco tumbled more than 12% on Thursday after cuts to its annual forecasts raised fears that excess inventory with customers was sapping new orders in its mainstay networking equipment business.

The company was set to lose more than $25 billion in market value, if losses hold, based on its share price of $46.90, after it lowered its projections for profit and revenue for fiscal year 2024 on Wednesday.