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Cisco reported its earnings for the third quarter of 2024.

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Chuck Robbins, chief executive officer of Cisco, participated in a Bloomberg interview at the World Economic Forum in Davos, Switzerland, on Jan. 17, 2024.

Stefan Wermuth | Bloomberg | Getty Images

Cisco reported its earnings for the third quarter of 2024, surpassing Wall Street’s estimates despite a decline in sales compared to the previous year. The company’s stock rose over 6% in extended trading following the announcement. Key figures include:

  • Earnings per share: 88 cents adjusted vs. 82 cents expected
  • Revenue: $12.7 billion vs. $12.53 billion expected

The revenue for Cisco saw a 13% year-over-year drop in the quarter ending on April 27, marking its steepest decline since 2009. Net income also fell by 41% to $1.89 billion. The decrease was attributed to clients setting up previously acquired equipment. Networking revenue, particularly data center switches, which account for a significant portion of the total revenue, decreased by 27% during this period.

During the quarter, Cisco finalized its $28 billion acquisition of security software maker Splunk. Although this affected Cisco’s adjusted earnings per share by a penny, it brought an additional $413 million in revenue. Consequently, Cisco revised its fiscal 2024 revenue guidance to a range of $53.6 billion to $53.8 billion, up from the previous estimate of $51.5 billion to $52.5 billion in February.

The company also adjusted its full-year earnings forecast to $3.69 to $3.71, compared to the previous range of $3.68 to $3.74. Prior to this announcement, Cisco’s shares had declined by 2% in 2024, while the S&P 500 index had shown an 11% increase.

Following the financial results, Cisco shared that Gary Steele, Splunk’s former CEO, would take on the role of president of go-to-market for the parent company. In addition, Jeff Sharritts, Cisco’s chief customer and partner officer, will be departing. Further insights and discussions regarding the earnings will be provided during the upcoming conference call scheduled for 4:30 p.m. ET. Stay tuned for updates on this developing story.

This is breaking news. Please check back for updates.

WATCH: Cisco CEO Chuck Robbins: $28 billion Splunk deal will be a significant financial growth driver

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