Cisco Stock Soars on Strong AI Demand and Q1 Beat

San Jose, California – Cisco Systems’ latest earnings report sent its stock climbing over 7% in after-hours trading, as the networking giant beat Wall Street expectations and delivered a bullish forecast, powered by booming demand for artificial intelligence infrastructure.

For the quarter ending October 25, Cisco’s adjusted earnings rose 10% year-on-year to $1 per share, while revenue increased 8% to $14.9 billion — both topping analyst estimates. The results marked the company’s first full quarter including software firm Splunk, which Cisco acquired for $25 billion in cash.

The company’s growing role in AI infrastructure was the clear highlight. Orders for AI-related networking solutions exceeded $1.3 billion, jumping from $800 million in the previous quarter. Cisco said this surge came largely from cloud providers building next-generation AI data centers that need high-speed Ethernet upgrades. Overall product orders rose 13%, up from 7% in the prior quarter.

Riding the AI wave, Cisco has strengthened its collaboration with Nvidia to deliver advanced networking solutions and is even preparing to enter the AI server market — a direct challenge to established players like Dell.

Looking ahead, Cisco expects revenue between $14.9 billion and $15.3 billion for the January quarter, with a midpoint of $15.1 billion — well above analyst forecasts of $14.62 billion. The company’s renewed focus on profitable growth, capital returns, and campus infrastructure upgrades is resonating with investors.

Cisco’s strategic pivot from traditional networking hardware to software, services, and cybersecurity is also beginning to pay off. With Splunk now integrated, the company is poised to deepen its foothold in the data analytics and security space.

As of Wednesday’s close, Cisco shares had already gained more than 24% in 2025, and the post-earnings surge to $79.16 signals growing investor confidence in its AI-driven future.