Splunk Helped Cisco Security Revenue Soar in Latest QuarterSplunk Helped Cisco Security Revenue Soar in Latest Quarter

Cisco security revenue grew a whopping 117%, to $2.1 billion in its latest quarter, with the company's acquisition of Splunk playing a key role driving topline revenue.

Cisco on Wednesday reported its results for the second quarter of its 2025 fiscal year 2025, which ended Jan. 25. The company's revenue increased 9% year-over-year, to $14 billion. That was at the top end of Cisco's previous guidance, the company said. However, the acquisition of Splunk had not closed when fiscal year 2024 second quarter ended (Jan. 27, 2024). With Splunk revenue removed, Cisco revenue declined 1% year-over-year. Cisco saw 4% and 3% revenue growth for security and observability, respectively, when not counting Splunk numbers. But including Splunk, security grew 117%, and observability grew 47%.

Collaboration grew 1%. Networking revenue declined 3% year-over-year, though it still represents the largest share of Cisco's technology portfolio ($6.85 billion for the quarter).

The company pointed to an increase in product orders. Including Splunk, product orders grew 29%, and they grew 11% without Splunk. Specifically, AI infrastructure orders added up to more than $350 million. Cisco said AI infrastructure orders for the first half of its fiscal year (which started July 28, 2024) totaled more than $700 million.

Related:Cisco’s Latest Network, Security Launches Address AI Challenges

Cisco's Gary Steele

The earnings report came the same day news broke that Gary Steele, Cisco president of go-to-market and former Splunk CEO, would resign effective April 25. His plan is to pursue a chief executive role at another company, but Cisco didn't reveal any further specifics in its SEC filing.

Cisco Security Revenue: AI Becomes 'Pervasive'

“Cisco’s strong quarterly results were driven by accelerating customer demand for our technology," Cisco chair and CEO Chuck Robbins said. “As AI becomes more pervasive, we are well positioned to help our customers scale their network infrastructure, increase their data capacity requirements, and adopt best-in-class AI security.”

Cisco chief financial officer Scott Heren said Splunk is meeting Cisco expectations for topline revenue. Moreover, Splunk "was accretive" for non-GAAP earnings per share "earlier than we had planned," Herren said. Cisco increased its quarterly dividend by 1 cent (3%), to 41 cents per common share. The company announced that its board of directors approved a $15 billion increase in their stock repurchase program.

Cisco last October announced its new 360 Partner Program, which is coming live this month. The new program puts a big focus on training and education, particularly as demand for AI solutions and AI infrastructure increases. The company noted that it bought U.K.-based Deeper Insights AI in the latest quarter.

Related:Cisco Makes 'Radical Change' with Cisco 360 Partner Program