Cisco Systems Inc (NASDAQ:CSCO) stock fell 2.45% (As on November 14, 11:15:24 AM UTC-4, Source: Google Finance) after the company reported solid fiscal first-quarter financial results that came in ahead of expectations and raised its 2025 full-year revenue outlook. The company’s net income fall from $3.64 billion one year earlier to $2.71 billion at the end of the quarter. Cisco said its networking business was the main reason for the decline. Revenue there declined 23% from the year-ago quarter to just $6.75 billion, just below the Street’s consensus of $6.8 billion. The company also reported security revenue of $2.02 billion, up 50% and comfortably ahead of the Street’s consensus of $1.93 billion, while sales from its collaboration software and tools came to $1.09 billion, just below the $1.04 billion analyst target. Elsewhere, revenue from services rose 6%, to $3.72 billion, while observability sales – a small but fast-growing segment – grew 36%, to $258 million.

During the quarter, Cisco announced the acquisitions of several startups. The most significant were the AI-focused security company Robust Intelligence Inc., which sells tools for protecting large language models and the data they use, and a second security firm called DeepFactor Inc., which provides container security and secure access tools. The company has also launched new Wi-Fi 7 solutions during the quarter, and introduced a series of AI agents for its Webex collaboration platform to help workers increase productivity by automating a range of call center tasks.

CSCO in the first quarter of FY 25 has reported the adjusted earnings per share of 91 cents, beating the analysts’ estimates for the adjusted earnings per share of 87 cents. The company had reported the adjusted revenue decline of 6 percent to $13.84 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $13.77 billion.

Looking to the second quarter, Cisco is anticipating earnings of 89 to 91 cents per share on revenue of between $13.75 billion and $13.95 billion. Both numbers are just above the Street’s targets, with analysts calling for earnings per share of 87 cents on sales of $13.8 billion.For the full year, Cisco is lifting its earnings guidance to a range of $3.60 to $3.66, up from an earlier range of $3.52 to $3.58 per share. In terms of revenue, it’s now looking at sales of $55.3 billion to $56.3 billion, up from its prior forecast of $55 billion to $56.2 billion. The new guidance suggests a return to growth, with revenue expected to increase by about 3% year-over-year. The new targets are both ahead of the Street’s forecasts, as analysts were modeling full-year earnings of $3.58 per share on sales of $55.89 billion.