Cisco Systems raised its sales outlook after posting higher-than-expected profit and sales for its fiscal third quarter, fueled by continued demand for the company’s technologies. The networking-equipment company said that it now expects revenue of $56.5 billion to $56.7 billion for its current fiscal year, up from a prior outlook of $56 billion to $56.5 billion. It also guided adjusted per-share earnings of $3.77 to $3.79, up from $3.68 to $3.74. Analysts surveyed by FactSet expect sales of $56.4 billion, as well as adjusted earnings of $3.72 a share. For its fiscal fourth quarter, ending in July, Cisco forecast adjusted per-share earnings of 96 cents to 98 cents on sales of $14.5 billion to $14.7 billion. Analysts modeled adjusted earnings of 95 cents a share on sales of $14.52 billion. Shares were up 2.8% to $63 in after-hours trading. Through Wednesday’s close, the stock is up 23% in the past year. The outlooks, which include the estimated effects of tariffs based on current trade policies, came as Cisco posted higher profit and revenue for its fiscal third quarter. The company logged a profit of $2.49 billion, or 62 cents a share, for its three months ending April 26, compared with a profit of $1.89 billion, or 46 cents a share, in last year’s comparable quarter. Adjusted per-share earnings came in at 96 cents, topping the 92 cents that analysts polled by FactSet expected. Cisco named Mark Patterson, its current chief strategy officer, as its next chief financial officer, effective July 27. He will succeed Scott Herren, who told the company earlier this month that he has decided to retire.

The Swiss stock market ended trading on Wednesday with a minimal loss. SMI shed 0.3 per cent to 12,132 points. 15 of the 20 SMI stocks were winners and five were losers. A total of 19.55 (previously: 20.2) million shares were traded. Alcon slumped by 7.6 per cent. The eye care specialist's first-quarter figures missed expectations. Alcon also lowered its margin forecast. Pharmaceutical heavyweights Novartis (-0.8%) and Roche (-1.7%) further contributed to the SMI's decline. Nestlé (+0.1%) managed to turn into positive territory towards the end. Geberit (+2.7%) benefited from the upgrade to ‘buy’ from ‘underperform’ by Jefferies analysts. Investors also picked up insurers that had been shunned in previous days. Swiss Life, Swiss Re and Zurich improved by up to 1.2 per cent.

Europe
Overall, the European stock markets finished lower on Wednesday. The Stoxx Europe 600 index closed down 0.4% at 543.21 points. In Paris, the CAC 40 was down 0.5% at 7,836.79 points, as was the SBF 120 at 5,948.11 points. In Frankfurt, the Dax index gave up 0.6%, while the FTSE fell by 0.2% in London. ALSTOM (-17.3%): the rail equipment manufacturer published results in line with expectations for its 2024-2025 financial year ending at the end of March, although its free cash flow target for the current financial year disappointed investors. ATOS (-9.4%): the IT services group unveiled its ambitions for 2028 on Wednesday ahead of an investor day. The group is targeting an average annual growth rate of 5% to 7% between 2025 and 2028. UNIBAIL-RODAMCO-WESTFIELD (+0.5%): On Wednesday, the shopping center operator unveiled its new strategic plan ‘A Platform for Growth’ to 2028, which prioritizes revenue growth and improved shareholder returns. BURBERRY (+17.2% in London): the British luxury goods group posted a net loss of 66 million pounds (around 78 million euros) for its 2024-2025 financial year ending at the end of March and announced that it was cutting 1,700 jobs in order to accelerate its cost-cutting measures. However, the group's fourth-quarter sales came in slightly ahead of expectations.

United States
The S&P 500 edged higher and bond yields continued their recent climb Wednesday, with optimism about potential trade deals and U.S. economic resilience wavering. Major indexes wandered aimlessly for much of the day, with some shares of economically sensitive stocks retreating after jumping earlier in the week. The Russell 2000 index, which tracks small-cap stocks, fell. The S&P 500 rose 0.1% and the Nasdaq Composite gained 0.7%. The Dow Jones Industrial Average lost 0.2%, or about 89 points. The S&P 500 index on Tuesday turned positive for the year for the first time since February. The benchmark index has now rebounded roughly 18% from its lowest closing level this year, recorded in early April when investors panicked over President Trump’s tariff blitz. Other indexes are modestly underwater for 2025. Meanwhile, President Trump continues his tour of the Middle East. The visit has been accompanied by a flurry of AI deals involving American tech companies, while the U.S. has scrapped a Biden-era rule limiting the diffusion of AI technology. Shares of Nvidia and Advanced Micro Devices added 4.2% and 4.7%, respectively, building on Tuesday’s gains. Boeing (+0.7%) and GE Aerospace (+0.7%) benefited from an order from Qatar. The airline Qatar Airways has placed orders worth USD 96 billion for aircraft and engines from the two companies, according to the White House. American Eagle Outfitters had published preliminary results for the first quarter, which were disappointing, and withdrew its forecast for the 2025 financial year. The share price slumped by 6.5 per cent. The market’s rebound has boosted some investors’ belief in the so-called “Trump put,” or the idea that the president will work to shield the market from deep declines.

Asia
Stocks in Asia mostly fell on Thursday. The Nikkei-225 is currently the day's loser, down 1.1 per cent. In Shanghai, the Composite Index is down 0.4 per cent and in Hong Kong the HSI is down 0.3 per cent. The South Korean Kospi fell by 0.3 per cent. Only in Sydney does the stock market barometer rise, albeit by only 0.2 per cent. In Tokyo, shares of export-oriented companies are being sold against the backdrop of the weak dollar. Nissan, Honda and Toyota, for example, dropped in price by over 3 per cent, as did Sony. New financial results from the pharmaceutical company Eisai were poorly received in the initial reaction. The share price plunged by almost 4 per cent.

Bonds
U.S. government debt yields recovered on Wednesday. The 10-year Treasury note yield gained 3 basis points (0.03 percentage points) to 4.53%. The 2-year Treasury note yield, which is more sensitive to changes in the economy, added 4 basis points to 4.057%. Mark Capleton from Bank of America expects yields to continue to rise because foreign investors are less and less willing to finance the US deficit. Lower demand for US bonds is likely to drive up their yields.

Analysis
Rating Geberit: Jefferies upgrades to Buy (Underperform) - Target CHF 710 (374)
Target price Sonova: UBS lowers to CHF 275 (280) - Neutral
Target price R&S: UBS raises to CHF 26.00 (24.90) - Buy