Robust sales growth and AI …

Q: What do you see in view of the customer's buying behavior in view of the uncertainty with tariffs and a comment in the public sector and the federal government? A: Charles Robbins, CEO, said that customer purchase behavior had not made a meaningful change, and they are still obliged to transition technology, especially for AI. Scott Herren, CFO, added that there was no broad pull-head business due to tariffs. With regard to the public sector, Robbins found that the global public sector rose by 8%. Despite the challenges in the civil sector, the US federal orders showed double-digit growth.

Q: With Capex Meta growth by 70%, 2025 is a top year for Cloud Capex and what happens to Cisco when Cloud Capex slows down? A: Robbins expressed that he did not expect to be a top year for Cloud Capex in 2025, especially on a global basis, citing ongoing sovereign cloud strategies and investments. Scott Herren added that the chance for Enterprise KI, especially when expanding inference skills, had to do several years.

Q: Can you explain the large sovereign deployment option and the effects of the G200 silicon to explain the switching of the data center in more detail? A: Robbins made it clear that the Humain announcement in Saudi Arabia is not included in the $ 600 million AI orders and that they are just starting. With regard to the G200 silicon, it is of central importance for system orders, and customers strive to maintain more capacity, which indicates strong demand.

Q: How does Cisco take part in the possibilities of the east -handed east and how high is the momentum in the enterprise vertical, especially in campus? A: Robbins mentioned that Cisco's discussions in the Middle East include networking, calculating, security and observability, whereby the significant expenses are expected. In the Enterprise vertical, there is a strong demand for modernization of the infrastructure, which is due to the need for advanced networks to support AI applications.

Q: What drives the networking mandate resistance and can you exclude with Splunk with organic sales growth rates? A: Robbins found that the networking mandate was broadly based, whereby the company switching, switching the data center and the Wi-Fi 7. Scott Herren explained that Splunk is easy and the integration is going well. He mentioned that they did not plan to break organic in the future against inorganic growth.

For the complete protocol of the earnings call, see the full profit call transcription.

This article first appeared on Gurufocus.