Cisco has revised its revenue forecast for the fiscal year 2024/25 upward following a strong third quarter. The company now expects revenue to rise to up to $56.7 billion, representing growth of up to five percent.
Growth Driven by Artificial Intelligence
The positive outlook is mainly supported by high demand in the field of Artificial Intelligence (AI). In the third quarter, Cisco recorded orders worth approximately $600 million due to the AI boom. Revenue increased by eleven percent to $14.1 billion, and profit rose by about a third to $2.5 billion. These impressive figures exceeded analysts’ expectations and caused Cisco’s stock to rise by four percent in after-hours trading.
Challenges and Opportunities
Although challenges such as U.S. tariff policies remain, Cisco was able to raise its revenue forecast from an initial $56 to $56.5 billion to up to $56.7 billion. The strong demand for AI infrastructure and solutions remains the central driver of growth.
For investors, this development is a promising sign that shows Cisco continues to generate solid revenues through the AI trend and expects further growth.
- Revenue forecast for fiscal year 2024/25: Up to $56.7 billion (up to five percent increase)
- Reason: High demand for AI products and infrastructure
- Third quarter: +11% revenue ($14.1 billion), profit increase of about a third ($2.5 billion)
- Stock reaction: After-hours price increase of about four percent
These results underscore Cisco’s successful positioning in the expanding AI technology market and send a positive signal to investors.