Cisco Systems (CSCO:US) shares rose modestly in early Thursday trade after the company reported better-than-expected FQ4 results.

The fourth-quarter revenue amounted to $15.20 billion, marking a 16% year-over-year increase, and surpassing the estimated $15.05 billion. Adjusted EPS for the fourth quarter reached $1.14, compared to $0.83 in the previous year and an estimated $1.06.

Adjusted gross margin was 65.9%, higher than the 63.3% from the previous year, and surpassing the estimate of 65.1%. The adjusted operating margin stood at 35.4%, ahead of the consensus of 34.7%.

The company’s product revenue rose 20% YoY to $11.65 billion

"This past year was a milestone year for Cisco with record performance in both the full year and Q4," said Chuck Robbins, chair and CEO of Cisco. 

"We are seeing solid customer demand, gaining market share, and innovating in key areas like AI, security, and cloud. This momentum gives us confidence in our ability to capture the many opportunities ahead."

For this quarter, Cisco sees adjusted EPS in the range of $1.02 to $1.04, exceeding the consensus estimate of $0.99. Revenue guidance is between $14.5 billion to $14.7 billion, in line with the consensus of $14.57 billion.

For FY24, Cisco anticipates adjusted EPS to range from $4.01 to $4.08, in line with the consensus of $4.05. However, revenue for the year is projected between $57 billion to $58.2 billion, below the expected $58.31 billion.

The stock received a boost after the management said on the earnings call that Cisco is “super well positioned for AI transition.”

Several lawmakers were selling Cisco shares this year, including Zoe Lofgren, Tommy Tuberville, Rob Wittman, Tom Carper, Scott Franklin, and Josh Gottheimer

Shares were up 11.3% year-to-date through Wednesday’s close.