Cisco beats on earnings and revenue, lifting stock

Core Insights - Cisco reported better-than-expected profit and revenue for its fiscal first quarter, with revenue increasing 8% to $14.88 billion and net income rising to $2.86 billion, or 72 cents per share [1][4] - This marks the fourth consecutive quarter of growth for Cisco after a period of four consecutive year-over-year revenue declines [2] - The company's networking business, its largest unit, experienced a 15% sales increase to $7.77 billion, surpassing analyst expectations [2] Financial Performance - Revenue for the fiscal first quarter was $14.88 billion, compared to $13.84 billion in the same period a year earlier, reflecting an 8% increase [1] - Net income rose to $2.86 billion from $2.71 billion year-over-year, translating to earnings of 72 cents per share, up from 68 cents [1] - For the fiscal second quarter, Cisco anticipates revenue between $15 billion and $15.2 billion, exceeding the average estimate of $14.6 billion [4] Market Trends - Growth in data center spending is primarily driven by artificial intelligence investments, with companies focusing on servers equipped with graphics processing units, mainly from Nvidia [3] - Cisco is aligning itself with the AI trend, having recently introduced a new Ethernet switch based on Nvidia silicon [3] Stock Performance - Cisco shares have increased by 25% this year, outperforming the Nasdaq's 21% gain [4]