Cisco CSCO small group

Q: What drove Cisco’s $600M in AI orders this quarter, and is this the new run rate going forward?

• $600M in AI orders in Q3 FY25, with total webscale orders (AI + non-AI) much larger.

• Driven by top 6 webscale customers, 3 of whom grew triple digits YoY, from longstanding engineering engagements (9–12 months).

• Diversified across customers using Silicon One-based systems, optics, and optical systems; Middle East deals (e.g., G42) contributed $0.

• Initial FY25 target of $1B in AI orders has been surpassed, with more traction in Q4.

• Cisco may stop disclosing AI-specific orders due to portfolio convergence; $600M run rate sustainability is uncertain, but growth will continue.