Cisco's shares were set to open about 13 percent lower after the network equipment maker forecast a steep drop in revenue, prompting at least two brokerages to downgrade its stock and 12 to cut their price targets.
Cisco Systems said sales in the current quarter will drop by as much as 10 percent, shocking analysts who had expected revenue to grow in the period. The company also warned it was expecting business to be "challenging" for the next few months.
(What is Cisco stock doing now? Click here to get the latest quote.)
On CNBC's "Closing Bell" Cisco CEO John Chambers said that "CEOs are very concerned and probably more cautious about next year than I've seen them in quite a while ... " He added that recent government activity contributed to the "lack of confidence that people are seeing."
Chambers later told CNBC that he is likely to stay as CEO for at least two more years, putting him at the latter end of the range he'd given previously for his expected retirement.