Cisco Reports Strong Earnings Amidst AI Infrastructure Growth

Cisco sees a solid 10% share rise in 2025 following a Q2 earnings report that exceeded expectations. Investors are excited about growth in AI infrastructure orders, boosting confidence in future performance.

Date: 26-02-2025

AI Rating: 7

Earnings Per Share (EPS)
Cisco reported adjusted EPS of $0.94 for fiscal Q2 2025, marking an 8% increase, which is a positive indicator for investors.

Revenue Growth
The company experienced a revenue increase of 9% in the same quarter, hitting nearly $14 billion, again exceeding estimates. This growth enhances Cisco's appeal to investors looking for stable revenue increases.

Overall Financial Outlook
While Cisco's revenue from AI infrastructure orders stands at around 1.7% of its projected fiscal 2025 revenue, it reflects an emerging market strategy. Such figures indicate Cisco's long-term potential in AI, despite the current low impact on total revenue.

Profit Margins
The acquisition of Splunk has significantly boosted Cisco's margins, with security and observability segments showing positive growth rates, which will likely enhance profitability.

Dividends and Share Buybacks
Cisco returned $2.8 billion to shareholders last quarter and has a buyback capacity worth 6.6% of its market cap, showcasing a robust capital return strategy. A dividend yield of 2.5% positions Cisco favorably against its peer group.

Stocks: CSCO