Chuck Robbins, Cisco CEO, speaking on CNBC's Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22, 2025.
Cisco reported better-than-expected profit and revenue for its fiscal first quarter on Wednesday. The stock rose more than 7% in extended trading.
Here's how the company did in comparison with consensus estimates from LSEG:
Earnings per share: $1 adjusted vs. 98 cents expected
Revenue: $14.88 billion vs. $14.77 billion expected
Revenue increased 8% from $13.84 billion in the same period a year earlier, Cisco said in a statement. Net income climbed to $2.86 billion, or 72 cents per share, from $2.71 billion, or 68 cents per share, a year ago.
It's the fourth straight quarter of growth for Cisco following a stretch of four consecutive year-over-year revenue declines, as the company contended with economic uncertainty and delayed spending from government agencies.
Cisco's networking business, its biggest unit, saw sales climb 15% to $7.77 billion. Analysts were expecting revenue for that segment of $7.47 billion, according to StreetAccount.
Most of the growth in data center spending is focused on artificial intelligence, as companies bolster their investments in servers packed with graphics processing units, primarily from Nvidia . Cisco is trying to tie itself more closely to the AI boom, and last month introduced a new Ethernet switch based on Nvidia silicon.
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