Cisco tops estimates and lifts outlook as AI demand boosts orders
Published: 16:31 14 May 2025 EDT
Cisco Systems Inc (NASDAQ:CSCO, ETR:CIS) topped Wall Street estimates for quarterly revenue and earnings and raised its annual forecast on Tuesday, signaling that demand for its networking equipment is picking up amid rising investment in artificial intelligence infrastructure.
The company posted revenue of $14.15 billion in its fiscal third quarter, up 11% from a year earlier and ahead of the $14.05 billion expected by analysts.
Non-GAAP earnings per share rose 9% year-over-year to $0.96, beating estimates of $0.92, while operating cash flow climbed 2% to $4.1 billion.
“Demand for our technologies remains strong,” CEO Chuck Robbins said. “Our AI momentum is accelerating with trusted partnerships and secure networking.”
Product orders jumped 20% year-over-year, or 9% excluding its recent acquisition of data analytics firm Splunk. Orders for AI infrastructure from webscale customers surpassed $600 million in the quarter.
Revenue from the Americas rose 14% to $8.38 billion, while sales in EMEA and APJC regions grew 8% and 9%, respectively.
Cisco, the largest provider of networking gear, now expects fiscal 2025 revenue of $56.5 billion to $56.7 billion, raising the lower end of its previous forecast of $56 billion. The company also reaffirmed its full-year non-GAAP earnings outlook of $3.77 to $3.79 per share.
For the current quarter, Cisco forecast revenue between $14.5 billion and $14.7 billion and non-GAAP EPS of $0.96 to $0.98.
Shares of Cisco rose 3.5% in after-hours trading.
