Cisco Systems, Inc. (CSCO) reported impressive second-quarter fiscal 2025 results, beating analysts' estimates on both revenue and earnings. The strong performance was driven by accelerating customer demand for its AI-powered technologies, particularly in the areas of network infrastructure, cybersecurity, and AI integration.

For the quarter ended January 25, 2025, Cisco's revenue rose 9% year-over-year to $14.0 billion, surpassing expectations of $13.87 billion. This growth was fueled by a 29% increase in product orders, bolstered by the acquisition of Splunk. The company's security revenue surged an impressive 117% due to strategic acquisitions like Splunk, strengthening its cybersecurity portfolio.

Cisco's non-GAAP earnings per share (EPS) climbed 8% to $0.94, beating analysts' estimates of $0.91. The company's strong profitability was driven by the contribution from Splunk and productivity improvements. Additionally, Cisco's AI Infrastructure orders exceeded $350 million, reflecting its focus on AI integration across its product lines.

Encouraged by the robust demand, Cisco raised its full-year fiscal 2025 revenue guidance to a range of $56.0 billion to $56.5 billion, up from its previous forecast of $55.3 billion to $56.3 billion. The company also increased its non-GAAP EPS guidance for fiscal 2025 to a range of $3.68 to $3.74, up from the earlier range of $3.60 to $3.66.

Furthermore, Cisco increased its quarterly dividend by 3% to $0.41 per share and expanded its stock repurchase program by $15 billion, demonstrating its commitment to returning value to shareholders.