Cisco forecasts fourth-quarter revenue above estimates on enterprise demand

Cisco Systems has projected its fourth-quarter revenue to surpass analysts' expectations, influenced by increased enterprise spending and improved supply chain conditions. The company aims to diversify beyond its core networking equipment sector, which has faced challenges from supply chain disruptions and reduced post-pandemic demand.

Despite a 13% drop in third-quarter revenue, Cisco's results still exceeded forecasts, helped by contributions from its recent acquisition, Splunk. The company's shares saw a boost following the announcement, although they have underperformed compared to the broader market this year. Cisco is also exploring pricing strategies to manage inventory levels, which may impact future profit margins.