Cisco Systems (NASDAQ:CSCO) has announced its fiscal third quarter results for the period ended April 27, 2024.

Despite a 13% decrease in revenue to $12.7 billion, in line with expectations, Cisco showcased strong profitability, with GAAP gross margins at 65.1% and non-GAAP gross margins at 68.3%.

Meanwhile, Cisco has emphasized its transformed business model with the Splunk acquisition.

The acquisition contributed $413 million in revenue, with total subscription revenue reaching $6.9 billion, 54% of the total revenue.

This growth has led to a notable increase in annualized recurring revenue (ARR), reaching $29.2 billion, a 22% rise year over year.

Looking ahead, Cisco forecasts Q4 2024 revenue between $13.4 billion and $13.6 billion.