Cisco CEO Chuck Robbins talking on CNBC’s “Squawk Field” exterior the World Financial Discussion board in Davos, Switzerland, on Jan. 22, 2025.
Gerry Miller | CNBC
Cisco shares climbed about 6% in prolonged buying and selling on Wednesday after the networking {hardware} maker reported fiscal second-quarter outcomes and steering that topped Wall Road’s expectations.
Here is how the corporate did in opposition to LSEG consensus:
- Earnings per share: 94 cents adjusted vs. 91 cents anticipated
- Income: $13.99 billion vs. $13.87 billion anticipated
Income elevated 9% within the quarter, which ended on Jan. 25, from $12.79 billion a yr earlier, based on a assertion. The expansion follows 4 quarters of income declines. The corporate mentioned it had orders for synthetic intelligence infrastructure that exceeded $350 million within the quarter.
Cisco now sees adjusted earnings of $3.68 to $3.74 for the 2025 fiscal yr, with $56 billion to $56.5 billion in income. Analysts polled by LSEG had been searching for $3.66 in adjusted earnings per share and $55.99 billion in income. In November, the forecast was $3.60 to $3.66 in per-share earnings and $55.3 billion to $56.3 billion in income.
Web revenue within the newest interval slid virtually 8% to $2.43 billion, or 61 cents per share, from $2.63 billion, or 65 cents per share, a yr in the past.
Income from the networking division totaled $6.85 billion, down 3% however greater than the $6.67 billion consensus amongst analysts surveyed by StreetAccount.
The safety unit contributed $2.11 billion. That is a 117% enhance from a yr earlier, due to the addition of Splunk. Analysts anticipated $2.01 billion, based on StreetAccount.
Splunk, which Cisco purchased in March 2024 for $27 billion, was accretive to adjusted earnings per share before deliberate, Scott Herren, Cisco’s finance chief, was quoted as saying within the assertion. Cisco’s complete income would have been down 1% yr over yr if not for Splunk’s contribution, based on the assertion.
Many expertise corporations have been attempting to foretell the impression from President Trump’s newly established Division of Authorities Effectivity. However three-quarters of Cisco’s U.S. federal enterprise comes from the Protection Division, whereas a lot of the headcount reducing to date has occurred in different businesses, Cisco CEO Chuck Robbins mentioned on a convention name with analysts.
“Every part appears to be progressing as we anticipated,” he mentioned.
As of Thursday’s shut, Cisco shares had been up 5% to date in 2025, whereas the S&P 500 index had gained about 3%.
That is breaking information. Please verify again for updates.
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