From Nasdaq: 2025-06-13 11:29:00

Broadcom (AVGO) and Cisco Systems (CSCO) are key providers of security software solutions for enterprises, with AVGO offering a range of security solutions and CSCO offering Network Security, Identity and Access Management, and other solutions. Enterprise spending on cybersecurity software is expected to grow 14% in 2025 to $118.5 billion, presenting significant growth opportunities for both companies.

Broadcom has seen strong growth in its Infrastructure Software segment, with revenues jumping 25% year over year in the second quarter of fiscal 2025. The company’s focus on delivering AI-powered security solutions has been notable, with recent updates to its VMware vDefend and Symantec Endpoint Security Complete offerings. Additionally, strong demand for Broadcom’s ASICs supports top-line growth.

Cisco’s security business has seen a 54% year-over-year increase in revenues, with a focus on infusing AI across Security and Collaboration platforms. The company’s Secure AI Factory with NVIDIA and hybrid mesh firewall solutions are aimed at helping enterprises build and secure data centers for AI workloads. The acquisition of Snap Attack further enhances Cisco’s security capabilities.

The Zacks Consensus Estimate for AVGO’s fiscal 2025 earnings is $6.63 per share, while the estimate for Cisco’s fiscal 2025 earnings is $3.79 per share. Both companies have consistently beaten earnings estimates in the past four quarters, with Cisco showing a slightly better average surprise rate. In terms of valuation, Cisco is trading at a lower forward 12-month Price/Sales ratio compared to Broadcom.

Broadcom leads the race on a stronger AI push, with expectations of third-quarter fiscal 2025 AI revenues jumping 60% year over year. Cisco is not far behind, expanding its AI portfolio for data centers with new solutions. While both companies face competitive environments, Broadcom’s partnerships with key players give it a slight edge. Both AVGO and CSCO currently carry a Zacks Rank #3 (Hold).



Read more at Nasdaq: AVGO vs CSCO: Which Enterprise Security Software Stock Has an Edge?