By Adam Levine

Cisco Systems' earnings report Wednesday afternoon will give a investors a look into its efforts to diversify.

For the company's fiscal third quarter, analysts are expecting adjusted earnings of 92 cents a share, up 4% from last year, on revenue of $14.0 billion, up 11%.

Cisco was one of the biggest beneficiaries of the rise of networked systems and the internet, and its current networking portfolio spans from wi-fi base stations to high-speed switches in data centers. Network hardware still makes up over half its revenue.

Cisco has long been trying to diversify away from its core business. In addition to networking, it has WebEx collaboration tools, and network security, highlighted by its March 2024 acquisition of Splunk.

The new revenue from the Splunk acquisition will continue to make year-over-year comparisons tricky in the third quarter, but that effect will end in the current quarter. Cisco has been providing metrics on Splunk's effect on financials, and investors should expect the same on Wednesday.

Cisco stock was down around 1% in midday trading Wednesday ahead of its earnings announcement.

Write to Adam Levine at adam.levine@barrons.com

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May 14, 2025 14:49 ET (18:49 GMT)

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