During the quarter, Cisco completed its $28 billion acquisition of security software maker Splunk. The deal lowered Cisco’s adjusted earnings per share by a penny but provided $413 million in additional revenue.
“Upon closing the deal, we identified 5,000 existing Cisco customers who have the potential to become meaningful Splunk customers and our sales teams are already making those connections,” Robbins said. Cisco will be able to reduce costs over time, finance chief Scott Herren said.
Cisco bumped up its fiscal 2024 revenue guidance to a range of $53.6 billion to $53.8 billion, from $51.5 billion to $52.5 billion in February. Analysts polled by LSEG had expected $53.14 billion.
The company narrowed its full-year adjusted earnings forecast. It’s now $3.69 to $3.71, compared with $3.68 to $3.74 in February. The LSEG consensus was $3.67.
Herren called for fiscal 2025 revenue growth in the low- to mid-single digits.
Prior to Wednesday’s announcement, shares were down 2% in 2024, while the S&P 500 index was up 11%.
Cisco said Gary Steele, who had been Splunk’s CEO, is becoming the parent company’s president of go to market, effective immediately. Steele will continue to run Splunk, Herren told CNBC in an interview. Jeff Sharritts, Cisco’s chief customer and partner officer, will leave. Sharritts’ organization will now report to Steele, along with marketing chief Carrie Palin, Herren said.
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