Cisco Reports Strong Earnings, Exceeds Analyst Expectations

LAS VEGAS, Nevada — Cisco Systems reported strong financial results on Wednesday, surpassing analyst expectations for both earnings and revenue. The company’s earnings report for the quarter ending April 26 indicated a revenue of $14.1 billion, up 11% from $12.7 billion a year ago.

CEO Chuck Robbins highlighted the company’s performance during a conference call with analysts, stating, “The macroeconomic environment is uncertain, but we are seeing solid demand for our networking and artificial intelligence products.” Cisco’s net income rose to $2.49 billion, or 62 cents per share, compared to $1.89 billion, or 46 cents per share, in the same quarter last year.

Analysts had anticipated earnings of 92 cents per share on revenue of $14.1 billion. Cisco also provided guidance for the upcoming fiscal year, forecasting earnings per share between 96 cents and 98 cents, with total revenue expected to reach between $14.5 billion and $14.7 billion. This guidance is slightly above analyst predictions, which estimated adjusted earnings per share of 95 cents and revenue of $14.58 billion.

Robbins noted that the company’s guidance includes potential impacts from new tariffs on imported goods. Cisco also reported over $600 million in artificial intelligence infrastructure orders during the quarter, bringing its fiscal year total to $1.25 billion. This figure exceeded expectations, having reached the $1 billion milestone a quarter early.

In addition to its overall performance, Cisco’s networking revenue rose 8%, amounting to $7.07 billion, while security product revenue increased by 54% to $2.01 billion. However, the security product revenue fell short of expectations, which were set at $2.17 billion, largely due to the integration of Splunk, which Cisco acquired for $27 billion.

As of Wednesday’s close, Cisco shares were up 3.5% so far this year, while the S&P 500 index showed little movement.