Cisco Systems (NASDAQ: CSCO) gained over 4% in pre-market trading on Thursday after the company delivered third-quarter results that topped estimates and issued upbeat guidance, supported by robust demand for AI-related network infrastructure.
The tech giant reported earnings per share (EPS) of $0.96 on revenue of $14.15 billion, beating Wall Street forecasts of $0.92 EPS and $14.04 billion in revenue. Growth was broad-based, with revenue in the Americas rising 14%, EMEA up 8%, and APJC up 9%.
Product revenue, which forms the bulk of Cisco’s top line, grew 15% year-over-year, while services revenue increased 3%. Total product orders rose 20% versus the prior year, or 9% when excluding contributions from the recently acquired Splunk.
AI-related infrastructure demand remained a key growth driver, with orders from webscale customers reaching over $600 million in the quarter, beating the company’s $1 billion full-year target one quarter ahead of schedule. Gross margin improved to 65.6%, up from 65.1% in the previous quarter.
Looking ahead, Cisco guided for fiscal Q4 non-GAAP EPS of $0.96 to $0.98 on revenue of $14.5 billion to $14.7 billion, both ahead of consensus forecasts. For the full fiscal year 2025, the company expects EPS of $3.77 to $3.79 and revenue between $56.5 billion and $56.7 billion, reflecting continued momentum driven by AI investments and broad-based demand.
Separately, Cisco announced executive leadership changes in an SEC filing.
Chief Financial Officer Scott Herren will retire on July 26, 2025, and transition to an Executive Advisor until May 1, 2026. He will be succeeded by Mark Patterson, who will take over as CFO on July 27, 2025.
Additionally, Jeetu Patel has been named President and Chief Product Officer, effective May 14, 2025. Patel joined Cisco in 2020 and has served as EVP and Chief Product Officer since August 2024.
As of the latest update, Cisco Systems (NASDAQ: CSCO) shares are up 4.14%, trading at $63.83.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
