Communications hardware giant Cisco has reported a 4.3% EPS beat of 96c for Q3 on the back of a drive to capitalise on AI infrastructure and enterprise markets such as Saudi Arabia.
The company says its partnership with NVIDIA to simplify and de-risk AI infrastructure deployment remains strong and it has just inked a deal with Saudi Arabia's Humain AI, backed by its sovereign wealth fund.
“In addition, we have joined the AI infrastructure partnership alongside BlackRock Global Infrastructure Partners, MGX, Microsoft, NVIDIA, xAI and energy partners GE Vernova and NextEra Energy,” Cisco chief executive Chuck Robbins said.
- Earnings per share: 96 cents (92 cents expected) - up 4.3% on expectations
- Revenue: $14.15 billion ($14.08 expected) - up 11% YoY
For the rest of FY 2025, management issued guidance of 96 to 98 cents per share (cps) on $14.5-$14.7 billion in revenue, a beat compared to LSEG analyst consensus estimates of 95cps and $14.58 billion in revenue.
Cisco said the guidance factors in the expected impact of President Donald Trump’s sweeping tariffs on goods imported into the U.S. - which include 30% for China and 25% for both Canada and Mexico.
“We haven’t seen any meaningful change in their purchasing, and so we haven’t seen any customers really fundamentally slowing down,” Robbins said.
"In Q3, we returned $3.1 billion in capital to our shareholders through share repurchases and dividends with a total of $9,6 billion in value returned year to date.
"Our overall strong performance was a result of accelerated product innovation and solid execution by our teams driving sustained demand for our technologies.
“Total product orders grew 20% year over year or 9% on an organic basis excluding Splunk. Despite the uncertain macro environment, this demonstrates the valuable outcomes we are delivering for customers in the era of AI.”
Robbins also announced that CFO Scott Herren would retire effective 26 July. Herren, who joined Cisco in 2020 after serving as Autodesk's finance chief, will be succeeded by Mark Patterson, Cisco's current chief strategy officer and a 25-year company veteran.
“In addition, we have joined the AI infrastructure partnership alongside BlackRock Global Infrastructure Partners, MGX, Microsoft, NVIDIA, xAI and energy partners GE Vernova and NextEra Energy as it seeks to invest in secure efficient and scalable infrastructure to support AI workloads,” Robbins said.
With a market cap of $243 billion, shares in Cisco are swapping at $61.29.
