Podcast Summary: Bloomberg Talks — Cisco CEO Chuck Robbins Talks Earnings

Podcast: Bloomberg Talks
Host: Bloomberg
Guest: Chuck Robbins, CEO of Cisco
Date: November 13, 2025

Episode Overview

This episode features Cisco CEO Chuck Robbins discussing Cisco’s strong quarterly performance, their evolving business model, new customer relationships—especially among hyperscalers and in sovereign cloud markets—security strategy, the impact of AI, product innovation, and future outlooks. The discussion highlights how Cisco is positioning itself as a pivotal technology provider amid the global shift toward AI and cloud infrastructure.

Key Discussion Points and Insights

1. Record Quarter & Reflections on Cisco’s Legacy

Timestamp: 01:09 – 01:54

• Cisco’s Strong Performance:
  Chuck Robbins opens by expressing pride in Cisco’s record-breaking quarter, pointing to what may be "the best year" in company history.
• Legacy Comparison:
  When asked to reflect on the company's significance since the 2000 tech boom, Robbins says the support from hyperscalers is a powerful endorsement of Cisco’s current innovation.

“We had a record quarter and set ourselves up for what's likely going to be the best year we've ever had.”
— Chuck Robbins [01:16]

• Customer Perception:
  He notes that modern hyperscalers, some of the world’s most advanced clients, "do the deepest analysis of the technology before they make decisions."
  Their growing spend with Cisco signals trust in the firm’s offerings.

2. Expansion into New Customer Segments

Timestamp: 01:54 – 02:32

• Robbins details Cisco's growing business with major U.S. hyperscalers and highlights new sovereign cloud deals in the Middle East (G42 in the Emirates, Humane and Saudi).
• Cisco sees emerging opportunities among sovereign players in Europe, Southeast Asia, and India.
• The $1.3 billion disclosed relates specifically to the company’s top five hyperscaler customers.

3. Embracing the Circular Economy and Managing Risk

Timestamp: 02:32 – 03:38

• Pipeline Growth:
  Over $2 billion in pipeline for NEO cloud, sovereign cloud, and enterprise sectors over the coming three quarters.
• Ecosystem & Innovation:
  Cisco’s strength lies in a robust partner ecosystem and technical expertise, positioning them to help build out AI workloads confidently and securely.

“Our bread and butter over the years has been in the enterprise… we have full stack solutions, we have security, we have all the things that they're looking for to actually build out AI workloads and deal with AI with confidence.”
— Chuck Robbins [03:17]

4. Security: Progress and Challenges

Timestamp: 03:38 – 04:55

• Security Portfolio:
  Robbins acknowledges that while Cisco is "not pleased with where we are yet" in security, significant progress has been made.
• Growth Metrics:
  • Next generation firewalls: "mid teens growth in orders"
  • Splunk ARR: double-digit growth
  • New/refreshed security products: continuous growth
• Accounting Impact:
  Revenue recognition differed as customers shifted from on-premise to cloud-delivered Splunk; cloud revenue is realized over the contract term, complicating quarterly results.
• Offsetting Strength:
  Networking business performing strongly and offsets security revenue volatility.

“We've made a lot of progress. It's a major decision for customers to make big platform decisions in security… But the issue we had in the quarter was really, it's an accounting issue around how cloud delivered Splunk versus On Prem delivered Splunk.”
— Chuck Robbins [03:54, 04:19]

5. Evolution Through Innovation & M&A

Timestamp: 04:55 – 06:12

• Product Strategy:
  Robbins highlights strategic increases in software offerings like security and calls the Splunk acquisition "a great one."
• In-House Silicon:
  A pivotal 2016 investment in Cisco’s silicon strategy is credited as the “absolute reason” for today’s success with hyperscalers.
• Future Focus:
  Cisco remains open to both internal innovation and relevant M&A, especially in security and AI.

“Our silicon strategy… is absolutely the reason that we're having success today in the hyperscaler space. If we did not have our silicon… we wouldn't be participating at all.”
— Chuck Robbins [05:36]

6. On the AI Market: Bubble or Future?

Timestamp: 06:12 – 07:27

• AI Investment:
  Robbins pushes back against the idea of an AI bubble. Major spenders have solid financials and view AI as an "existential issue" rather than a “nice to have,” underscored by heavy, rapid investment from big tech.
• Room to Grow:
  Notes that AI’s true potential is ahead of us—physical AI, synthetic training, robotics, and broad enterprise adoption have yet to mature.

“They view it as existential, which you see with the level of spending that they're putting into it. So it's, it's a lot and it's moving fast… there's a huge opportunity ahead for all of us, I believe.”
— Chuck Robbins [06:39, 07:19]

7. Financial Projections: Conservative Outlook?

Timestamp: 07:27 – 07:57

• Challenged on whether financial projections are "conservative," Robbins stands by Cisco’s numbers, citing dynamic markets but "very confident in the numbers."

“We're 90 days into the year… We have three more quarters to play out. Lots of things can change. The world's very dynamic, but we're very confident in the numbers that we put up yesterday.”
— Chuck Robbins [07:47]

Notable Quotes & Memorable Moments

• “The hyperscalers… do the deepest analysis of the technology before they make decisions. And I think that their decisions to continue spending more with us speaks volumes about the innovation and the technology that our teams are building right now.” — Chuck Robbins [01:23]
• “I'm proud of what the teams have built and we saw our next generation firewalls, we saw mid teens growth in orders there. We saw double digit ARR growth in Splunk.” — Chuck Robbins [04:01]
• “The difference between now and 2000 is that these are massive companies with strong financial performance and they believe in this 100%.” — Chuck Robbins [07:03]

Timestamps for Key Segments

• 01:09 — Chuck Robbins on Cisco’s record quarter and reflecting on 2000
• 01:54 — New customers: hyperscalers, sovereign deals, geographic expansion
• 02:32 — Pipeline, circular economy, and investment risk
• 03:38 — Security portfolio progress and accounting nuances
• 04:55 — Cisco’s product mix evolution, software, silicon strategy, M&A
• 06:12 — AI investment: bubble vs. fundamental shift
• 07:27 — Financial projections and market confidence

Conclusion

Chuck Robbins positions Cisco as a leader successfully navigating industry transformation, fueled by a shift to AI, sovereign cloud markets, and a focus on security and proprietary silicon. While candid about challenges in security revenue recognition and market dynamism, Robbins emphasizes robust growth, adaptability, and “huge opportunity ahead” for Cisco as technology needs continue to surge across sectors.