The company announced Wednesday it's cutting 7% of its workforce and reported quarterly results that beat analyst estimates.
Analysts at Bank of America noted that networking sales were down 28.1% year-over-year but said that was mostly due to tough comparisons, and that the focal point of the quarter was on order recovery. "Data center switching orders were up double-digits YoY, while orders for campus switching and routing were up high-single digits," the analysts, who have a buy rating on Cisco, wrote in a report. They added that orders tied to artificial intelligence crossed $1 billion and revenue will start to ramp in the first half of 2025.The company's core networking business, which includes routers and switches, has struggled since large companies started moving to the cloud.