Cisco has climbed back into the top five of the Dow Jones Industrial Average after hitting a new record high in its latest financial quarter, with shares rising more than 8 per cent on Tuesday as investors sought to boost their holdings.
The company reported a net income of $4.8 billion on $12.9 billion in revenue for the three months ended March 31.
Cisco’s shares have climbed more than 7 per cent in 2017.
It is also a big beneficiary of the $30 billion merger of its biggest competitors, Cisco Systems and Juniper Networks.
Shares rose by 7.7 per cent to $34.72 on Tuesday.
Cisco is now trading at $39.00.
Mr Cook said he was pleased with Cisco’s financial results.
“I think we’re going to have a lot more optimism on Cisco going forward because it’s been through a lot of changes over the past couple of years,” he said.
Cisco shares are currently trading at a market value of $60.88.
Cisco said its share price was higher than the S&P 500 and the Nasdaq Composite, and that the stock was “highly liquid”.
But analysts were cautious.
The Dow Jones average for Cisco shares rose 7.4 per cent.
Cisco stock is currently trading for $35.20.
Shares of rival Juniper were up 8 per to $38.63.
The combined company, which has more than $400 billion in annual revenue, was expected to report profit of $11.9bn in the latest quarter.
The two companies said they would work with the US government to address concerns about the security of the data stored on the routers they jointly sell.
Juniper said its earnings were “expected to be impacted by the security issues” and would be adjusted downward.
Cisco also announced plans to spend $3.5 billion to build a new data centre in Brazil, which will be used to help customers migrate their cloud-based services.
The Cisco and Junoserv merger was one of the biggest in Silicon Valley history.
The US Department of Justice has accused the companies of conspiring to shield the identities of millions of customers from data breaches.