Cisco Stock Pops on Higher Outlook, $15B Buyback Boost

Cisco Systems (CSCO) shares surged close to 7% in extended trading on Wednesday, following the company's announcement of a higher-than-expected outlook and a $15 billion stock buyback program. The networking hardware giant reported fiscal second-quarter results that topped Wall Street's estimates, with revenue of $14 billion, up 9% year-over-year, and adjusted earnings of $3.8 billion, or 94 cents per share. Cisco also raised its full-year revenue forecast to between $56 billion and $56.5 billion, up from a previous estimate of $55.3 billion to $56.3 billion.

The strong quarterly results were driven by accelerating customer demand for the company's technology, particularly in the areas of AI infrastructure and cloud offerings. Cisco reported AI infrastructure orders exceeding $350 million in the quarter, bringing the total for the first half of fiscal 2025 to approximately $700 million. The company's board also approved a $15 billion increase to its stock repurchase program, which is expected to boost shareholder value.