Cisco Systems $CSCO (-0,55%) published its results for the second quarter of the 2025 financial year yesterday, February 12, 2025, exceeding analysts' expectations. The company reported revenue of USD 14 billion, an increase of 9% compared to the previous year. Adjusted earnings per share rose to 94 cents, compared to 87 cents in the same period last year.
A key driver of this growth is the increasing demand for networking equipment, which is essential for the expansion of artificial intelligence (AI) infrastructures. In the past quarter, Cisco recorded orders for AI infrastructures amounting to over USD 350 million, which underlines the importance of this segment.
Based on this positive development, Cisco has raised its revenue forecast for the 2025 financial year and now expects revenue of between USD 56 and 56.5 billion, compared to the previous forecast of USD 55.3 to 56.3 billion.
In addition, the company has expanded its share buyback program by USD 15 billion and increased its quarterly dividend by 3% to 41 cents per share, reflecting management's confidence in the future development of the company.
The positive results and optimistic outlook led to a 6.3% rise in Cisco shares in after-hours trading.
Sources:
1.Reuters:
Cisco raises revenue forecast for fiscal 2025 as demand for AI networking equipment rises
https://www.reuters.com/technology/cisco-raises-full-year-revenue-forecast-2025-02-12/
2.Barron's:
Cisco beats earnings expectations and gives optimistic outlook.
https://www.barrons.com/articles/ciscos-earnings-stock-price-c29746c8
3.MarketWatch:
Cisco benefits from rising demand for AI infrastructure.
4.Investopedia:
Cisco expands share buyback program and increases dividend.
https://www.investopedia.com/cisco-earnings-q2-fy2025-11678867