Cisco reported quarterly results and guidance that topped Wall Street expectations, driven by a sharp acceleration in orders for artificial intelligence infrastructure. The US group posted revenue of $15.84bn for the quarter ended April 25, compared with $15.56bn expected by analysts according to LSEG. Adjusted EPS reached $1.06, also beating forecasts. Following the release, the stock jumped 15% in after-hours trading.
Quarterly revenue rose 12% y-o-y, while net income reached $3.37bn compared to $2.49bn a year earlier. For Q4, Cisco forecasts adjusted EPS of between $1.16 and $1.18 and revenue of $16.7bn to $16.9bn, both levels exceeding market expectations. The group said it has already booked $5.3bn in orders from hyperscalers and AI infrastructure providers this year.
Cisco raised its annual target for AI-related orders to $9bn, up from a previous $5bn, and now expects $4bn in revenue from this segment. Long perceived as lagging in the AI data center race, the group is now benefiting from renewed investor interest. During the quarter, Cisco also introduced new switches and routers powered by its next-generation network processors. Revenue from its networking business surged 25% to $8.82bn, while cybersecurity revenue remained stable at around $2bn.
Cisco Systems, Inc. is the world leader in designing, developing, and marketing Internet network equipment. Net sales break down by family of products and services as follows:
- network equipment (59.1%); switches and routers, technological software and systems (storage, Internet access, and security systems, wiring, gateways, connection interfaces and modules, etc.), etc.;
- services (26.6%): technical assistance, network design, execution, and integration services, etc.;
- security products (14.3%).
Net sales are distributed geographically as follows: Americas (59.4%), Europe/Middle East/Africa (26.2%) and Asia/Pacific (14.4%).
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