Cisco Stock Soars 4.3% to $51.80 in 2025 After Beating Q3 Revenue Estimates and Raising Annual Forecast
Cisco Systems exceeded Q3 revenue expectations and boosted its full-year revenue guidance for 2025, driving shares up 4.3% in after-hours trading. Discover how Cisco’s strategic acquisition and strong digital solutions position it for growth in the AI era.
Highlights from Cisco's Q3 2024 Earnings
- Cisco reported Q3 revenue of $12.7 billion, surpassing analyst forecasts despite a 13% year-over-year decline.
- Adjusted earnings per share reached 88 cents, beating expectations even as net income declined.
- The acquisition of Splunk enhanced revenue growth prospects, though it temporarily affected earnings.
- Full-year revenue guidance was raised to $53.6–$53.8 billion, above previous estimates and analyst predictions.
Cisco Systems (CSCO) saw its shares jump more than 4% in after-hours trading on Wednesday following a strong Q3 earnings report. The company posted $12.7 billion in revenue for the quarter ending in 2024, exceeding market expectations despite a 13% drop compared to last year.
Net income fell to $1.88 billion (46 cents per share) from $3.21 billion (78 cents per share) the previous year, but adjusted earnings per share, excluding one-time items, reached 88 cents—surpassing analyst forecasts.
During the quarter, Cisco finalized its acquisition of Splunk, a leader in enterprise data infrastructure solutions. This move is anticipated to fuel future growth, even though it had a short-term negative impact on earnings. Cisco CFO Scott Herren emphasized the strategic value of adding Splunk to the product portfolio.
The company updated its full-year revenue outlook to a range between $53.6 billion and $53.8 billion, up from $51.5 billion to $52.5 billion forecasted in Q2 and above the $53.24 billion consensus estimate.
CEO Chuck Robbins highlighted Cisco's strength in integrating networking, security, observability, and data to deliver unmatched digital resilience amid the evolving AI landscape.
Following the announcement, Cisco shares rose to $51.80 in extended trading as of 5:40 p.m. ET on Wednesday.
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