- Cisco Systems exceeded Wall Street's expectations in terms of profit and sales in the second quarter.
- The networking company reported earnings of 94 cents per share on sales of 14 billion US dollars. Analysts polled by FactSet had expected earnings of 91 cents per share on sales of 13.9 billion US dollars expected.
- Cisco's profit rose compared to the previous year's figure of 87 cents per sharewhile sales of 12.8 billion US dollars to 14 billion US dollars.
- The increase in turnover is attributable to the acquisition of the data platform Splunk which Cisco acquired last year. Without the contribution from Splunk, total sales would have fallen by 1 % compared to the previous year.
"Cisco's strong quarterly results were driven by increasing customer demand for our technology," said CEO Chuck Robbins in a press release. "As AI becomes more pervasive, we are well positioned to help our customers scale their network infrastructure, increase their data capacity requirements and implement world-class AI security."
- For the third quarter, Cisco expects revenue to be between 13.9 billion US dollars and 14.1 billion US dollarscompared to the analysts' consensus forecast of 13.88 billion US dollars.
- Expected earnings are between 90 cents per share and 92 cents per sharewhich is roughly in line with Wall Street estimates of 90 cents per share per share.
The technology company is also increasing its dividend by 1 cent per share to 41 cents.