Cisco Systems reported a sharp jump in net income in the July quarter as the company continued to receive billions in orders from artificial-intelligence hyperscalers. The network-equipment company posted a profit of $3.86 billion, or 97 cents a share, compared with $2.55 billion, or 64 cents a share, a year earlier. Adjusted earnings were $1.22 a share, topping the $1.17 expected by analysts.

CEO Chuck Robbins said, “Customers know that if they pause or slow down they run the risk of being way behind.” Hyperscalers like Amazon, Microsoft and Alphabet’s Google are investing heavily in AI infrastructure, from chips to data centers, networking equipment and software. The surge in AI orders is driving growth as top AI labs race to build and train ever-more capable models.

The strong quarter reflects the accelerating demand for AI-related infrastructure, positioning Cisco to capture a larger share of the market. With billions in orders rolling in, the company is benefiting from the broader industry push to expand AI capabilities.