Cisco's AI-Driven Sales Boost

Cisco Systems has issued a promising revenue forecast for the current quarter, indicating that the company is seeing increased demand for its networking systems due to the rise of AI technology. Cisco anticipates revenue to fall between $14.5 billion and $14.7 billion, with adjusted earnings per share expected to be between 96 and 98 cents.

The networking giant's AI infrastructure orders have surpassed $600 million this quarter, bringing the yearly total to over $1 billion ahead of schedule. CEO Chuck Robbins noted the strong demand for Cisco's technologies, fueled by its secure networking portfolio and global partnerships. Cisco now projects fiscal year 2025 revenue between $56.5 billion and $56.7 billion, up from the previous forecast of $56 billion to $56.5 billion. They also anticipate annual adjusted profit between $3.77 and $3.79 per share, compared to the prior projection of $3.68 to $3.74 apiece.

These positive results reflect the broader trend of companies investing heavily in AI infrastructure, driving demand for Cisco's ethernet switches, routers and other networking equipment. Cisco's success in capitalising on the AI boom demonstrates its strategic positioning and ability to meet the evolving needs of its customers.