Cisco Systems Inc., the biggest maker of computer networking equipment, delivered better-than-expected quarterly results and an upbeat outlook for the current period, but a conservative annual forecast brought a muted reaction from investors.

Sales will be $55.3 billion to $56.3 billion in fiscal 2025, which runs through July, Cisco said in a statement Wednesday. Though that was an uptick from its previous outlook, the midpoint of the range fell short of the $55.9 billion that analysts predicted.

Cisco — seen as a bellwether for corporate technology spending — has been working to bounce back from a yearlong slump. Customers delayed purchases while they dealt with a buildup in orders, but growth in orders is now coming back. The question for investors and analysts is how quickly.

The concerns weighed on the shares in late trading, with the stock fluctuating between gains and losses. The stock had increased 17% this year, closing at $59.20 in New York.

Sales will be $13.75 billion to $13.95 billion in the fiscal second quarter, which ends in January, the company said. That compares with an average analyst estimate of $13.74 billion.

Sales declined 6% to $13.8 billion in the first quarter, which ended Oct. 26. Still, that was better than the $13.77 billion estimated by analysts. The sales growth expected in the current period would be the first gain in a year.

First-quarter profit was 91 cents a share, minus some items. Wall Street projected 87 cents. Orders expanded 20%, following an increase of 14% in the preceding three months.

Chief Executive Officer Chuck Robbins pointed to the growth of artificial intelligence spending as a boon for Cisco. Companies have been beefing up their computing systems to handle the flood of new AI software and services.

“Cisco is off to a strong start to fiscal 2025,” he said in the statement. “Our customers are investing in critical infrastructure to prepare for AI.”

Robbins has been trying to transform Cisco into a provider of networking services and software. While that push has added more recurring revenue to its balance sheet, a major chunk of its sales still comes from one-time installations of hardware equipment.

During its sales slowdown, Cisco took steps to trim its payroll. The San Jose, California-based company said three months ago that it would cut its workforce of 90,400 by about 7%. That led to expenses of about $1 billion, Cisco has said.