Cisco Systems raises guidance as hits AI order target a quarter early

14th May 2025 21:30

(Alliance News) - Cisco Systems Inc on Wednesday flagged broad-based growth and strength in AI as it raised guidance for the second quarter in a row.

Cisco shares were up 3.5% in after hours trading in New York on Wednesday. They earlier closed down 1.0% at USD61.13.

The California-based communications technology company said net income rose 32% to USD2.49 billion in the financial third quarter to April 26 from USD1.89 billion a year prior.

Diluted earnings per share improved 38% to USD0.62 from USD0.46.

Revenue increased 11% to USD14.15 billion from USD12.70 billion, beating consensus of USD14.04 billion.

"Cisco once again had strong quarterly results with clear demand for our technologies," said Chuck Robbins, chair and chief executive of Cisco.

"The momentum we are seeing with AI is fueled by the power of our secure networking portfolio, our trusted global partnerships, and the value we bring to our customers."

Cisco said product orders were up 20% year over year, or by 9% excluding Splunk, with growth across all geographies and customer markets.

Artificial intelligence orders taken from webscale customers exceeded USD600 million in the quarter, surpassing the firm's USD1 billion target one quarter early.

Looking ahead Cisco expects fourth quarter revenue of USD14.5 billion to USD14.7 billion, GAAP EPS of USD0.62 to USD0.67 and non-GAAP EPS of USD0.96 to USD0.98.

The firm raised full-year guidance for revenue to USD56.5 billion to USD56.7 billion from USD56.0 billion to USD56.5 billion before. GAAP EPS guidance was lifted to USD2.53 to USD2.58 from USD2.40 to USD2.52.

"Another quarter of solid execution in Q3 drove revenue, margins and EPS above our guidance ranges," said Scott Herren, chief financial officer. "Our innovation positions us well for future growth and our operational discipline is generating strong cash flows, enabling us to deliver significant shareholder returns."

In addition, Cisco declared a quarterly dividend of USD0.41 per common share.

By Jeremy Cutler, Alliance News reporter

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