Cisco Systems Inc (NASDAQ:CSCO, ETR:CIS) beat Wall Street estimates for second-quarter revenue and profit, driven by strong demand for its security offerings and contributions from its Splunk acquisition, and raised its full-year outlook.
The company reported Q2 revenue of $14 billion, slightly above analysts' expectations of $13.87 billion, according to LSEG data.
Adjusted earnings per share (EPS) came in at $0.94, exceeding the consensus estimate of $0.91. GAAP EPS stood at $0.61.
Cisco's product orders grew 29% year-over-year, or 11% excluding Splunk, signaling continued strength in enterprise spending. However, networking revenue declined 3% year-over-year, while security revenue surged 117%, reflecting a shift in focus towards cybersecurity solutions.
Cisco raised its quarterly dividend by 3% to $0.41 per share. The company now expects fiscal-year revenue in the range of $56 billion to $56.5 billion, up from its previous guidance, and forecast third-quarter revenue between $13.9 billion and $14.1 billion.
Shares of the networking giant rose 5.6% at the opening bell Thursday following the results.