Cisco reported stronger-than-expected financial results for the quarter ending April 26, surpassing Wall Street forecasts on both earnings and revenue. Adjusted earnings per share came in at 96 cents, ahead of the 92 cents predicted by analysts, while revenue reached $14.15 billion versus the anticipated $14.08 billion.
This marks an 11% increase from the $12.7 billion reported a year earlier. Net income also rose significantly to $2.49 billion, or 62 cents per share, compared to $1.89 billion, or 46 cents per share, a year ago.
Leadership Transition and Strong Fiscal Guidance Amid Economic and Tariff Uncertainties
CEO Chuck Robbins acknowledged the ongoing economic uncertainty during a call with analysts and announced that CFO Scott Herren will retire on July 26. Herren, who joined from Autodesk in 2020, will be succeeded by Mark Patterson, Cisco’s chief strategy officer and a longtime company veteran.
For fiscal 2025, Cisco expects earnings per share between 96 and 98 cents and revenue between $14.5 billion and $14.7 billion, surpassing analysts’ expectations of 95 cents EPS on $14.58 billion in revenue.
Cisco Beats Earnings Forecasts, Raises Guidance as AI and Security Drive Double-Digit Growth
Cisco’s forward-looking guidance takes into account the expected impact of renewed tariffs on imports from countries including China, Canada, and Mexico. Robbins said the company didn’t observe any significant change in customer purchasing behavior ahead of these tariffs.
Notably, Cisco reported over $600 million in AI infrastructure orders from web companies during the quarter, bringing the fiscal year total to over $1.25 billion, reaching this milestone one quarter earlier than projected.
Strong Growth in Networking and Security, Driven by AI and Strategic Investments
The company continues to invest in AI and infrastructure technologies, including the launch of a Webex AI agent for customer service and new Ethernet switches powered by AMD Pensando data processing units. These innovations aim to enhance performance and enable hardware consolidation. Networking revenue rose 8% year-over-year to $7.07 billion, exceeding StreetAccount’s projection of $6.81 billion.
Cisco’s security segment posted impressive growth, with revenue jumping 54% to $2.01 billion, though it came in slightly below the $2.17 billion consensus estimate. This figure includes contributions from Splunk, which Cisco acquired for $27 billion last year. Additionally, Jeetu Patel, executive vice president and chief product officer, was promoted to the role of president and chief product officer. Cisco’s stock has gained 3.5% year-to-date, outperforming the largely flat S&P 500 index.
