By Connor Hart
Cisco Systems raised its sales outlook after posting higher-than-expected profit and sales in its fiscal third quarter, fueled by continued demand for the company's technologies.
The networking-equipment company said Wednesday that it now expects revenue of $56.5 billion to $56.7 billion for its current fiscal year, up from a prior outlook of $56 billion to $56.5 billion. It also guided for adjusted per-share earnings of $3.77 to $3.79, up from $3.68 to $3.74.
Analysts surveyed by FactSet expect sales of $56.4 billion, as well as adjusted earnings of $3.72 a share.
For its fiscal fourth quarter, ending in July, Cisco forecast adjusted per-share earnings of 96 cents to 98 cents on sales of $14.5 billion to $14.7 billion. Analysts modeled adjusted earnings of 95 cents a share on sales of $15.52 billion.
Shares rise 3.4%, to $63.40, in late trading. Through Wednesday's close, the stock is up 23% in the past year.
The outlooks, which include the estimated effects of tariffs based on current trade policies, came as Cisco posted higher profit and revenue in its fiscal third quarter.
The company logged a profit of $2.49 billion, or 62 cents a share, for its three months ended April 26, compared with a profit of $1.89 billion, or 46 cents a share, in last year's comparable quarter.
Adjusted per-share earnings came in at 96 cents, topping the 92 cents that analysts polled by FactSet expected.
Revenue increased 11%, to $14.15 billion. Analysts modeled sales of $14.05 billion.
Product revenue jumped 15%, to $10.37 billion, while services revenue climbed 2.6%, to $3.78 billion.
Chief Executive Chuck Robbins said the recent quarter's results are indicative of demand for the company's technologies. "The momentum we are seeing with AI is fueled by the power of our secure networking portfolio, our trusted global partnerships, and the value we bring to our customers," he said.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
May 14, 2025 16:28 ET (20:28 GMT)
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