Post by : Bianca
Haleem
San Jose, California – Cisco Systems’ recent earnings report fueled a more than 7% increase in its stock during after-hours trading, surpassing Wall Street forecasts and offering an upbeat outlook, driven by soaring demand for AI infrastructure.
In the quarter ending October 25, Cisco’s adjusted earnings climbed 10% year-over-year to $1 per share, while its revenue grew by 8% to $14.9 billion, both outperforming analyst expectations. This marked the first full quarter of contributions from software firm Splunk, which Cisco acquired for $25 billion in cash.
The rise in Cisco's involvement in AI solutions was a standout feature, with orders for AI-centric networking products reaching over $1.3 billion, up from $800 million in the preceding quarter. Cisco attributed this increase primarily to cloud service providers establishing next-gen AI data centers requiring high-speed Ethernet enhancements. Total product orders rose by 13%, improving from 7% the previous quarter.
Capitalizing on the AI trend, Cisco is bolstering its partnership with Nvidia to develop sophisticated networking solutions and is even set to launch into the AI server market, directly competing with well-established companies like Dell.
For the upcoming January quarter, Cisco predicts revenue between $14.9 billion and $15.3 billion, aiming for a midpoint of $15.1 billion, significantly above analysts’ expectations of $14.62 billion. The company’s renewed emphasis on profitable growth, capital return, and upgrades to campus infrastructure resonates well with its investors.
Cisco’s strategic shift from traditional networking hardware toward software, services, and cybersecurity appears to be yielding results. With the integration of Splunk, Cisco is gearing up to strengthen its position in the data analytics and security sectors.
By the close of trading on Wednesday, Cisco shares had risen more than 24% in 2025, and the post-earnings boost to $79.16 reflects increasing investor confidence in its AI-focused future.
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