Cisco Systems Inc. announced on Wednesday that its revenue in the second quarter of the fiscal year 2024 saw an annual fall of 6% to reach $12.8 billion, slightly above expectations. The company’s net income decreased by 5% compared to the same trimester in 2023 to hit $2.6 billion. Meanwhile, its diluted earnings per share (EPS) fell by 3% year-on-year to hit $0.65. Cisco also revised its revenue prediction for the third quarter from $12.1 billion to $12.3 billion.

CEO Chuck Robbins commented, “We delivered a solid second quarter with strong operating leverage and capital returns. We continue to align our investments to future growth opportunities. Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”

Following the release of the report, Cisco’s shares dropped by 5% in after-hours trading.