After releasing its financial report, Cisco's stock price rose 4% in after hours trading, indicating that the market has regained confidence in its performance and prospects.

Earnings performance: Cisco's revenue in the latest quarter reached $12.7 billion, a 13% decrease from the same period last year, but slightly higher than the market's expected $12.5 billion. In addition, the company has raised its annual guidance for the fiscal year ending in July, with an expected annual sales revenue of $53.6 billion to $53.8 billion, up from previous forecasts. The adjusted earnings per share is expected to be $3.70.

Operational dynamics: In the past few quarters, Cisco has lowered its performance forecast due to the backlog of routers and switches in the market. However, Chuck Robbins, CEO of the company, said that at present, the company's core Internet and enterprise network business is tending to normalization. Chief Financial Officer Scott Herren also confirmed that demand is stabilizing as customers digest equipment supply from the past few quarters.

Market and stock price performance: Cisco's stock price has fallen from $53 in November last year to a recent high of $40. However, after the release of this quarter's financial report, the stock price rose by 4% in post market trading, indicating that investors have regained confidence in the company.