Cisco Systems Inc. shares surged after-hours on Wednesday, driven by strong fiscal second-quarter earnings and revenue that outperformed Wall Street forecasts. The networking giant reported a 9% year-over-year revenue growth, fueled by robust demand for AI infrastructure, and provided an optimistic outlook for the upcoming fiscal year.
Cisco Systems shares surged about 6% in after-hours trading on Wednesday following the release of fiscal second-quarter earnings and guidance that exceeded Wall Street's forecasts. The networking hardware giant reported a 9% increase in revenue during the quarter, which concluded on January 25th, reaching $12.79 billion compared to the previous year. This positive performance marks a turnaround after four consecutive quarters of revenue decline.
The company highlighted a significant surge in orders for artificial intelligence (AI) infrastructure, exceeding $350 million in the quarter. Looking ahead, Cisco anticipates adjusted earnings between $3.68 and $3.74 for the 2025 fiscal year, with revenue projected to range from $56 billion to $56.5 billion. These projections surpassed analysts' expectations, who had estimated adjusted earnings per share of $3.66 and revenue of $55.99 billion.While net income dipped nearly 8% to $2.43 billion, or 61 cents per share, from $2.63 billion, or 65 cents per share, in the previous year, the company demonstrated strength in key segments. Revenue from the networking division reached $6.85 billion, a 3% decrease but exceeding the $6.67 billion consensus among analysts surveyed by StreetAccount. The security unit contributed $2.11 billion, representing a remarkable 117% year-over-year increase driven by the acquisition of Splunk, which surpassed analysts' expectations of $2.01 billion. Cisco's Chief Financial Officer, Scott Herren, stated that the Splunk acquisition, completed in March 2024 for $27 billion, positively impacted adjusted earnings per share sooner than anticipated. He further explained that without Splunk's contribution, Cisco's total revenue would have declined 1% year-over-year
CISCO STOCKS EARNINGS REVENUE AI INFRASTRUCTURE NETWORKS SECURITY
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