Cisco Systems (CSCO) reported fiscal first-quarter earnings and revenue that topped estimates amid strong artificial intelligence product order demand. Cisco stock rose as the company’s January quarter revenue outlook came in above views.
The computer network gear maker released Cisco earnings after the market close on Wednesday.
Fiscal Q1 financial results included software maker Splunk. For the period that ended Oct. 25, Cisco earnings rose 10% to $1 on an adjusted basis. Revenue climbed 8% to $14.9 billion.
Cisco Stock: AI Order Growth
Analysts estimated that Cisco would earn 98 cents per share on revenue of $14.78 billion, according to FactSet.
Also, artificial intelligence network infrastructure orders exceeded $1.3 billion, up from $800 million in the previous quarter, the company said. New AI-centric data centers being built by cloud computing companies are driving demand for Ethernet networking upgrades, Cisco said.
Overall, product orders rose 13%, improving from 7% the previous quarter.
Cisco’s AI business is getting a boost from a partnership with Nvidia (NVDA), analysts say. Also, Cisco plans to build AI servers, taking on Dell (DELL).
For its first fiscal quarter ending in January, Cisco forecast sales of $15.1 billion at the midpoint of its outlook. Analysts predicted sales of $14.62 billion.
On the stock market today, Cisco stock rose more than 4% to 77.01 in extended trading. Cisco stock had advanced over 24% in 2025 heading into the earnings report. Cisco stock owns an entry point of 72.55 from a cup base and trades in a buy zone.
The IBD Methodology: How To Invest In Stocks While Managing Risks
Cisco Stock: Technical Ratings
In addition, Cisco has shifted away from its core business of selling network switches and routers. With acquisitions, Cisco aims to increase revenue from software and services.
Cisco recently closed the acquisition of software company Splunk for $25 billion in cash. With roots in data analytics software, Splunk has expanded into cybersecurity.
Cisco stock holds a Composite Rating of 89 out of a best-possible 99, according to IBD Stock Check-up.
Meanwhile, Cisco stock holds an Accumulation/Distribution Rating of B-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
Learn The Best Trading Stock Rules From IBD’s Investor’s Corner
Want To Trade Options? Try Out These Strategies
Monitor IBD’s “Breaking Out Today” List For Companies Hitting New Buy Points
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
