Cisco Rides AI Wave and Strategic Moves to Boost Fiscal Outlook

Published 1 hours agoCSCO

Cisco Rides AI Wave and Strategic Moves to Boost Fiscal Outlook

Cisco is making waves in the AI infrastructure space, with recent orders in the second quarter of its fiscal year 2025 surpassing $350 million. This brings the total orders for the first half of the fiscal year to about $700 million, and the company expects to top $1 billion in orders by the end of fiscal year 2025. According to Cisco's newsroom, these figures underscore the company's significant growth momentum in AI as it positions itself for a strong fiscal year.

Further fueling Cisco's ambitious growth plans is the strategic acquisition of Splunk, completed in March 2024. Investing.com reports that this acquisition has bolstered Cisco's software capabilities, elevating it to one of the top software companies globally. The deal is anticipated to contribute significantly to Cisco's growth in fiscal year 2025 and become non-GAAP EPS accretive in fiscal year 2026. Cisco has also seen a 36% increase in its security segment, thanks in part to the Splunk acquisition, while its observability portfolio expanded by 14%.

Cisco is optimistic about its current fiscal year outlook, revising its revenue projection to $56.0–$56.5 billion, compared to a previous estimate of $55.3–$56.3 billion. The earnings per share guidance has also been increased, now ranging from $3.68 to $3.74, a bump from the previous target of $3.60 to $3.66, according to Nasdaq. Alongside a steady deployment of previously shipped products indicating a recovery in enterprise demand, Cisco is showing confidence in its strategic direction and growth in the technology sector.

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