Cisco Beats Estimates, Wins Major Bank Deal as AI-Driven Networking Supercycle Gains Momentum

Cisco Systems Inc. (CSCO) has reported strong Q4 results, exceeding revenue and EPS estimates as orders for networking and hyperscaler AI solutions surged.

The company won a significant contract with a global bank to supply 1,000 data-center smart switches, replacing major vendors in the process. This deal is seen as a testament to Cisco's growing adoption of integrated AI infrastructure.

Cisco CEO Chuck Robbins believes that rising agentic AI adoption is driving a networking supercycle, with customers increasing infrastructure spending to handle growing AI traffic across cloud, on-premise, and edge environments.

The company has also made significant cost cuts, reducing its global real estate by approximately 16% to 15 million square feet. This move is expected to save over $100M annually in operating costs.