Cisco Systems Inc. has boosted its fiscal 2025 sales and profit expectations, citing rising demand for networking hardware and the rapid rise of AI-powered data centres. The corporation also announced a significant leadership change, demonstrating its confidence in its evolving approach. Cisco’s shares rose about 4% in after-hours trading, as investors were encouraged by both the strong Cisco AI outlook and the smooth transition in senior leadership.
Cisco Raises Fiscal 2025 Guidance on AI
According to Reuters, Cisco Systems has raised its fiscal 2025 earnings estimate, citing higher-than-expected demand for its networking solutions, particularly from cloud service providers investing in AI infrastructure.
The company raised its full-year revenue forecast to $56.5–$56.7 billion, up from $56–$56.5 billion previously. It also expects higher adjusted earnings per share, increasing the range to $3.77–$3.79 from the earlier $3.68–$3.74 estimate. According to LSEG data, these updated figures slightly exceed the analysts’ average sales projection of $56.47 billion for the fiscal year.
Cisco’s revenue for the third quarter ended April 26 totalled $14.15 billion, exceeding the average analyst forecast of $14.08. The company announced adjusted earnings of 96 cents per share, which exceeded the consensus expectation of 92 cents.
Major cloud operators are investing heavily in next-generation AI workloads, increasing demand for Cisco’s high-performance switches and routers. CEO Chuck Robbins emphasized strong momentum, stating Cisco secured $600 million in AI infrastructure orders during the third fiscal quarter. These AI-related orders pushed Cisco’s total infrastructure revenue this year beyond $1 billion, reflecting rapid enterprise adoption of advanced AI technologies.
Mark Patterson Appointed CFO as Herren Plans Retirement
Apart from a strong Cisco AI outlook, it has announced major leadership changes as the company maintains solid momentum, fueled by demand for AI infrastructure. Scott Herren, the Chief Financial Officer since 2014, will retire on July 26, 2025. Mark Patterson, Cisco’s Chief Strategy Officer and a former managing director at Evercore, will take on the post. He will take on CFO responsibilities on July 27.
Additionally, in another related move, Cisco appointed Jeetu Patel, Executive Vice President and General Manager of Security and Collaboration, to the newly expanded role of President and Chief Product Officer. Thus, emphasising the company’s strategic focus on innovation and product leadership.
Cisco is benefiting from rising investments in data center infrastructure by tech firms managing generative AI’s heavy computational demands. David Heger, a technology analyst at Edward Jones, says Cisco has strengthened its position in cloud data center switching, expecting further growth.
Conclusion
Cisco’s leadership changes and updated outlook signal its shift from a traditional hardware firm to a software- and services-focused enterprise. The appointments of Patterson as CFO and Patel as President and Chief Product Officer reflect a strategic focus on AI and cloud innovation.
Positioning itself as a key player in AI data infrastructure, Cisco is responding to rising competition from Arista and Juniper by reinforcing its market leadership in networking. As enterprises and hyperscalers invest heavily in AI, Cisco is poised to capitalise on this momentum, strengthening both its operational capabilities and investor appeal.
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