Zhi Tong Cai Jing·2025-08-11 06:35Core Viewpoint - Cisco is expected to report a strong fourth-quarter performance with an EPS of $0.97, reflecting an 11.5% year-over-year increase, and revenue projected at $14.6 billion, a 7.1% increase from the previous year [1] Financial Performance - Cisco's stock has risen 23% year-to-date, outperforming peers like Dell Technologies and Hewlett Packard Enterprise [1] - The company anticipates slightly higher earnings and revenue for fiscal year 2025, with Q4 revenue expected between $14.5 billion and $14.7 billion [1] - In Q3, Cisco reported a 9% profit increase, driven by over $600 million in AI infrastructure orders, leading to an 11% revenue growth to $14.1 billion [1] Business Segments - Q3 network business revenue grew 8% to $7.07 billion, slightly above expectations, while security product revenue surged 54% to $2 billion, aided by the acquisition of Splunk [2] - The expected growth in Q4 is driven by improved demand for network products, particularly in switches, enterprise routing, and industrial network applications [2] - Analysts project "product-network business revenue" to reach $7.19 billion, a 5.6% increase, and "product-security business revenue" to be $2.2 billion, a 23.2% increase [3] Strategic Initiatives - Cisco's integration of AI into its security platform and the development of intelligent agent capabilities across its product line are key growth drivers [2] - The launch of Duo Identity and Access Management (IAM) solutions enhances Cisco's zero-trust security approach, addressing identity theft threats [2] - Cisco's enhanced security solutions, including hybrid mesh firewalls, simplify policy management and support secure business expansion [2]