Cisco's Trading Volume Drops 56.5% to $1.726 Billion, Ranks 34th in Market Activity

On March 24, 2025, Cisco's trading volume reached $1.726 billion, a 56.5% decrease from the previous day, ranking 34th in the day's stock market activity. Cisco's stock price increased by 1.11%.

Cisco Systems has expanded its portfolio with the introduction of an AI factory architecture developed in collaboration with NVIDIA. This new architecture is designed to drive up Cisco’s AI-driven revenues, with AI infrastructure orders exceeding $700 million by the end of the first half of fiscal 2025. The company is on track to surpass $1 billion in AI infrastructure orders for the fiscal year. AI-driven enterprises have been signing deals to purchase Cisco’s integrated systems, including Nexus, UCS, and additional solutions to power AI applications. The increasing deployment of AI-powered robotics and industrial security is expected to benefit Cisco’s industrial Internet-of-Things business, with orders growing more than 40% in the first half of fiscal 2025, and over 50% in the second quarter alone.

Cisco's partnership with NVIDIA includes the development of solutions that help build AI-ready data center networks. The Cisco Secure AI Factory with NVIDIA is based on the NVIDIA Spectrum-X Ethernet networking platform, with security at its core. This solution helps enterprises simplify, deploy, manage, and secure AI infrastructure at any scale. The NVIDIA-based CSCO AI POD product, which includes both hardware and software, is gaining traction. The launch of 800 gig Nexus switches based on Cisco’s 51.2 terabit Silicon One chip in April is expected to drive orders from AI-based cloud customers.

Cisco is expanding its Agentic AI footprint with the introduction of several new AI-driven solutions, including the Webex AI Agent, Cisco AI Assistant for Webex Contact Center, Workflow Automation in Cisco AI Assistant for Webex, AI Capabilities in Webex Control Hub, and Webex Calling Customer Assist. The company's strategy of infusing AI across Security and Collaboration platforms and developing Agentic capabilities across its portfolio is a key catalyst for growth. Cisco is leveraging Agentic AI to improve customer experience, with notable developments including the launch of Renewals Agent and a new Assistant to help customers digitize and de-risk Network Change Management. The acquisition of Deeper Insights has expanded Cisco’s CX AI capabilities and services.

Cisco’s security orders more than doubled in the fiscal second quarter, driven by the advanced data management, analytics, and threat detection capabilities of Splunk. In the second quarter of fiscal 2025, security revenues jumped 117% year over year to $2.11 billion, driven by Splunk, SASE, and Network Security. Cisco’s security business is benefiting from strong demand for both Cisco Secure Access and XDR. On a combined basis, both solutions have gained more than 1,000 customers in the trailing 12 months, and each of the products has roughly one million enterprise users. Hypershield is also gaining traction. Cisco integrated Talos into Splunk’s newly released Enterprise Security 8.0 solution and AppDynamics into Splunk’s on-prem log observer in the fiscal second quarter. The company also launched Splunk on Azure, Splunk Federated Analytics, and AI Assistant for Splunk Observability. Its latest launch, Cisco AI Defense, enables and safeguards AI transformation within enterprises, addressing challenges like data leaks, misuse of AI tools, and sophisticated threats using its advanced network visibility and control.

For fiscal 2025, Cisco expects revenues to be between $56 billion and $56.5 billion, and non-GAAP earnings between $3.68 per share and $3.74 per share. The Zacks Consensus Estimate for Cisco’s 2025 revenues is pegged at $56.43 billion, indicating growth of 4.88% on a year-over-year basis. The consensus mark for Cisco’s 2025 earnings is currently pegged at $3.72 per share, up by a penny over the past 30 days, indicating a year-over-year decline of 0.27%. Cisco has beaten the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 4.07%.