In a promising outlook for the fourth quarter, Cisco Systems, the renowned network equipment maker, has forecasted revenue that surpasses Wall Street expectations. The company's shares received a 5% boost in after-hours trading. Cisco's positive performance can be attributed to a rise in enterprise spending and the alleviation of supply chain constraints.

With the growing demand for artificial intelligence and cloud computing solutions, Cisco has been capitalizing on increased spending from companies seeking to enhance their technological capabilities. Moreover, the company has proactively worked towards reducing its dependence on its extensive networking equipment business, which has faced challenges in recent years due to supply chain disruptions and a slowdown in demand following the pandemic.

In an effort to bolster its cybersecurity capabilities and expand its market reach, Cisco completed the acquisition of Splunk last March. The deal, which amounted to enhancing revenue growth and gross margin expansion in the first fiscal year, is proving to be a catalyst for Cisco's future growth.

Cisco's Chief Financial Officer, Scott Herren, shared his optimism stating, "Customers are consuming the equipment shipped over the last few quarters as expected, leading to a stabilization of demand. The addition of Splunk to our product line will further propel our growth."

For the fourth quarter, Cisco is anticipating revenue between $13.4 billion and $13.6 billion. This projection exceeds analysts' estimates of $13.23 billion, as reported by LSEG data. In the previous quarter, Cisco registered revenue of $12.7 billion, surpassing estimates of $12.53 billion. The contribution made by Splunk amounted to $413 million. Adjusted earnings per share stood at 88 cents, exceeding estimates of 82 cents.

Overall, Cisco Systems anticipates a robust fourth quarter, bolstered by the surge in enterprise spending and the acquisition of Splunk. These factors position the company favorably to meet and surpass revenue expectations, showcasing a positive outlook for future growth and profitability.