Cisco Reports Strong Q2 Earnings, Driven by AI and Cloud Growth

The networking giant exceeds revenue and EPS expectations, raises guidance, and highlights AI infrastructure and subscription growth as key drivers.

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.