Quick Overview
- Stock index futures climbed modestly Thursday morning as market participants awaited wholesale inflation figures for July
- Cisco (CSCO) shares declined 6% following quarterly results, with investors focusing on year-over-year gross margin contraction
- Cerebras Systems plummeted 17-19% after delivering a significant earnings shortfall and reporting a quarterly deficit
- StubHub shares collapsed 17% as escalating operational expenses negated revenue growth tied to FIFA World Cup 2026 ticket sales
- Coherent stock retreated 4.4% even after surpassing analyst projections, weighed down by elevated investor expectations following competitor Lumentum’s impressive performance
Market activity intensified Thursday as companies released their latest quarterly financial statements. Traders kept close tabs on anticipated wholesale inflation metrics for July, which could influence Federal Reserve monetary policy decisions ahead.
Cisco (CSCO) Drops on Profitability Concerns
Networking giant Cisco unveiled fiscal fourth-quarter sales of $17.3 billion, marking an 18% year-over-year increase that surpassed Wall Street’s $16.85 billion projection. Adjusted profit per share reached $1.22, eclipsing analyst expectations of $1.17.
However, the stock tumbled 6% in trading. The culprit: declining gross profit margins compared to the prior-year period, triggering investor apprehension about profitability trends.
Cisco’s product order volume surged 35% year over year, while networking segment orders jumped 40% for the eighth consecutive quarter. The technology leader projected first-quarter fiscal 2027 sales between $18 billion and $18.2 billion, exceeding analyst consensus. Full-year 2027 revenue outlook of $72.2 billion to $73.4 billion similarly topped market expectations.
Company executives anticipate $7.5 billion in artificial intelligence-related hyperscaler sales during fiscal 2027, noting that hyperscaler orders more than doubled during the most recent quarter.
AI Chipmaker Cerebras and Ticketing Platform StubHub Report Quarterly Deficits
Cerebras Systems experienced a sharp 17% to 19% share price decline following the artificial intelligence semiconductor company’s substantial earnings disappointment. While quarterly revenue climbed 74.3% year over year to $180.1 million, it missed the $194 million analyst forecast. Adjusted loss per share registered at -$2.98, dramatically worse than the anticipated -$0.17.
The company highlighted core gross margin expansion to 41%, with executives noting cloud-based revenue growth approaching 300% year over year. Cerebras maintained its order backlog at approximately $25 billion.
Looking forward, Cerebras provided third-quarter core revenue guidance of $214 million to $216 million, exceeding consensus projections. Full-year 2026 core revenue forecasts range from $880 million to $890 million.
StubHub shares plunged 17% after the company disclosed a second-quarter loss. Although the ticket marketplace platform benefited from increased sales related to the 2026 FIFA World Cup, rapidly escalating operating expenses completely erased those revenue improvements.
Additional Market Movement Highlights
Coherent shares fell 4.4% despite delivering results that exceeded analyst estimates. The decline reflected investor disappointment after industry peer Lumentum had announced exceptionally strong quarterly performance earlier in the week, raising the bar for sector expectations.
JD.com stock dipped 3.2% notwithstanding the Chinese online retail giant’s second-quarter earnings and sales figures that topped Wall Street forecasts.
Among gainers, Omeros jumped 15% following robust second-quarter results fueled by YARTEMLEA’s successful market introduction, which delivered $32.2 million in total revenue—a 190% sequential increase from the previous quarter.
Fossil climbed 7% after reporting better-than-anticipated earnings and elevating its full-year financial guidance. The company’s gross margin expanded by nearly 490 basis points to reach 62.4%.
Virgin Galactic declined 11% after announcing a postponement of commercial spaceflight operations to February 2027, attributing the delay to ongoing challenges with avionics systems and related technical work.
The post Market Shakeup: Cisco (CSCO), Cerebras, and StubHub Tumble on Earnings Day appeared first on Blockonomi.
