Overview

• Cisco's Q2 FY2025 revenue reached $14.0 billion, a 9% increase year-over-year, with EPS of $0.94 surpassing analyst expectations.
• The company raised its FY2025 AI infrastructure order target to over $1 billion, citing strong demand from hyperscalers, telcos, and enterprises preparing for AI workloads.
• Security revenue and orders doubled, while subscription-based revenue now accounts for 56% of Cisco's total revenue, reflecting its shift to recurring revenue models.
• Cisco has mitigated its exposure to potential tariff impacts and remains optimistic about U.S. infrastructure investments and federal demand, with 75% of its government revenue coming from the Department of Defense.
• Wall Street analysts have upgraded Cisco's stock or raised price targets, citing growth in AI-driven networking, cloud demand, and synergies from the Splunk acquisition.