Cisco CEO Chuck Robbins reveal on CNBC’s “Squawk Box” outside the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.
Gerry Miller | CNBC
Cisco rations climbed about 6% in extended trading on Wednesday after the networking hardware maker reported fiscal second-quarter sequels and guidance that topped Wall Street’s expectations.
Here’s how the company did against LSEG consensus:
- Earnings per appropriation: 94 cents adjusted vs. 91 cents expected
- Revenue: $13.99 billion vs. $13.87 billion expected
Revenue increased 9% in the casern, which ended on Jan. 25, from $12.79 billion a year earlier, according to a statement. The growth follows four domiciles of revenue declines. The company said it had orders for artificial intelligence infrastructure that exceeded $350 million in the neighbourhood.
Cisco now sees adjusted earnings of $3.68 to $3.74 for the 2025 fiscal year, with $56 billion to $56.5 billion in gross income. Analysts polled by LSEG had been looking for $3.66 in adjusted earnings per share and $55.99 billion in revenue. In November, the vaticination was $3.60 to $3.66 in earnings per share and $55.3 billion to $56.3 billion in revenue.
Net income in the latest period tobogganed almost 8% to $2.43 billion, or 61 cents per share, from $2.63 billion, or 65 cents per divide up, a year ago.
Revenue from the networking division totaled $6.85 billion, down 3% but more than the $6.67 billion consensus magnitude analysts surveyed by StreetAccount.
The security unit contributed $2.11 billion. That is a 117% increase from a year earlier, hold responsibles to the addition of Splunk. Analysts expected $2.01 billion, according to StreetAccount.
Splunk, which Cisco bought in March 2024 for $27 billion, was accretive to adjusted earnings per share sooner than developed, Scott Herren, Cisco’s finance chief, was quoted as saying in the statement. Cisco’s total revenue would induce been down 1% year over year if not for Splunk’s contribution, according to the statement.
Many technology gatherings have been trying to predict the effects from President Donald Trump’s newly established Department of Regime Efficiency. But three-quarters of Cisco’s U.S. federal business comes from the Defense Department, while most of the headcount sneering thus far has occurred in other agencies, Cisco CEO Chuck Robbins said on a conference call with analysts.
“The total seems to be progressing as we expected,” he said.
Customers do not appear to be pulling up orders before tariffs go into effect, Herren told on the conference call.
As of Thursday’s close, Cisco shares were up 5% so far in 2025, while the S&P 500 index had clear about 3%.
WATCH: Cisco CEO Chuck Robbins on impact of tariffs, AI innovation and future of DEI
