Cisco Systems has raised its full-year revenue and profit forecasts, attributing the optimistic outlook to robust demand for its networking equipment fueled by the artificial intelligence boom. Concurrently, the company announced the impending retirement of Chief Financial Officer Scott Herren, with Chief Strategy Officer Mark Patterson set to assume the role effective July 27.

For the fiscal third quarter ending April 26, Cisco reported revenue of $14.15 billion, marking an 11% year-over-year increase and surpassing analysts’ expectations. Adjusted earnings per share stood at 96 cents, exceeding the anticipated 92 cents. The company’s strong performance was primarily driven by heightened demand for its core networking hardware, as cloud customers expanded their infrastructure to support AI applications.

In light of these results, Cisco has updated its full-year revenue forecast to a range of $56.5 billion to $56.7 billion, up from the previous estimate of $56 billion to $56.5 billion. The adjusted profit outlook has also been raised to between $3.77 and $3.79 per share, reflecting confidence in sustained demand for AI-related networking solutions.

CEO Chuck Robbins highlighted the company’s momentum, stating that the surge in AI is propelled by Cisco’s secure networking portfolio and strong global partnerships. He emphasized the value Cisco brings to its customers amid the evolving technological landscape. The company also reported that AI infrastructure orders exceeded $600 million during the quarter, pushing the year’s cumulative orders past the $1 billion mark ahead of schedule. This milestone underscores Cisco’s pivotal role in supporting the infrastructure needs of AI advancements.

In terms of leadership changes, CFO Scott Herren will retire on July 26 after a notable tenure. Mark Patterson, currently serving as Chief Strategy Officer, will succeed Herren, bringing a wealth of experience to the role. Following the earnings announcement and forecast revision, Cisco’s stock experienced a 3.8% increase in after-hours trading, reflecting investor confidence in the company’s strategic direction and growth prospects.

As Cisco continues to navigate the dynamic landscape of AI and networking, its enhanced forecasts and leadership transition signal a commitment to innovation and sustained growth in the evolving tech industry.