Cisco reported better-than-expected first quarter results and said it saw "acceleration in product orders reflecting normalizing demand."
Cisco projected first quarter revenue of $13.65 billion to $13.85 billion with non-GAAP earnings of 86 cents a share to 88 cents a share. Fiscal 2025 revenue will be between $55 billion to $56.2 billion with non-GAAP earnings of $3.52 a share to $3.58 a share.
Splunk launched a new set of generative AI tools across its products, security operations additions, and data management applications as well as more Cisco integrations.
Cisco at its Cisco Live conference outlined a partnership with Nvidia to launch Nexus HyperFabric AI Clusters, a data center networking architecture for generative AI deployments.
Cisco's third quarter was better-than-expected and the company outlined its next steps in the Splunk integration. The acquisition of Splunk means Cisco's subscription revenue is 54% of the total.
With the Splunk deal closed, Cisco becomes one of the largest enterprise software companies. Here's how the product integrations will play out.
Cisco said it will cut 5% of its global workforce in a bid to "realign the organization and enable further investment in key priority areas."
Cisco CFO Scott Herren said customers are implementing "large amounts of recently shipped product." "We expect to see product order growth rates accelerate in the second half of the year," he said.
Cisco CEO Chuck Robbins said the two companies product lines were complementary and provide "full observability for the entire IT stack."
Cisco's results were helped in part by moves last year to simplify its supply chain, so it had the parts to build its networking gear.
