Cisco's Strong Forecast and Splunk Acquisition Drive Stock Surge

Improved product orders and rising enterprise demand signal stabilization in networking equipment market.

Cisco's Q3 revenue of $12.7 billion exceeded analyst expectations despite a 13% year-over-year decline.
The company raised its full-year revenue guidance to between $53.6 billion and $53.8 billion.
Cisco's acquisition of Splunk added $413 million to Q3 revenue and is expected to boost future growth.
Product orders improved, with a 4% gain including Splunk, stabilizing after previous declines.
Shares rose over 4% in extended trading following the positive earnings report and outlook.