Profit is part of a major shift in the company’s revenue performance after a four-quarter decline.
Cisco Systems’ revenue shift lasted for the second consecutive quarter as artificial intelligence and global partnerships increased demand for technology products. The company’s shares rose in after-hours trading.
This is an 11% increase from the same period in 2024, exceeding the company’s previous guidance and exceeding the 9% year-on-year report in the second quarter.
Two consecutive quarters of growth represent a major recovery in the company’s revenue performance following four consecutive declines. The turnaround was driven by strong demand across all regions and product lines, with AI infrastructure orders from WebScale customers exceeding $600 million, surpassing the $1 billion target set just four quarters ago.
The portfolio of industrial goods, including heavy-duty catalyst products, rose 35% year-on-year, while data center switch orders rose double digits.
Earnings per share was $0.62, up 35% from the previous year, surpassing previous guidance.
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“Cisco has once again achieved quarterly results with clear demand for our technology,” CEO Chuck Robbins said in a statement. “The momentum we see in AI is supported by a secure networking portfolio, trusted global partnerships and the power of value we bring to our customers.”
Additionally, Cisco has joined the AI infrastructure partnership with BlackRock Global Infrastructure Partners, MGX, MICOSOFT, NVIDIA, XAI, and Energy Partners Ge Vernova and Nextera Energy, which support AI workloads.
Building partnerships to drive growth is a fundamental departure from the old glory era when Cisco made money through acquisitions. Between 1993 and 2000, the Networking Hardware Company acquired 70 companies, including Crescendo Communications (1993), Newport Systems Solutions (1994), Network Translation (1995), Netsys Technologies (1996), Net Speed (1998), and Growth Networks (1999).
However, this growth strategy was not sustainable, mainly by overpayment of these young companies and issuing new diluted shares to existing shareholders. This is how Cisco has won 4 billion shares and has yet to return to its peak performance on Wall Street.
Still, Robbins believes that AI will pave the way for a better day.
“I think AI opportunities are strong for us as we look ahead,” he said in a revenue call. “I think we’re positioned properly. From a technology and portfolio perspective, we play across the stack, so there’s networking, there’s security. There’s silicon. I think this is very important.
