Cisco’s security division reported a 2% year-over-year decline in revenues for the latest quarter, driven by ongoing customer migrations to cloud-native security platforms and a drop in legacy firewall appliance sales. Total security sales amounted to approximately $2.3 billion, compared with $2.35 billion in the prior year period. Despite the contraction, executives highlighted double-digit growth in newer software-as-a-service solutions, including zero-trust network access and secure access service edge subscriptions, which now represent nearly 30% of total security bookings. Management reiterated its target of returning the security business to mid-single-digit overall growth by the end of the fiscal year, citing several large enterprise renewals scheduled for Q3 and two recently closed deals each valued above $50 million.

In the third quarter, Braun Stacey Associates increased its stake in Cisco by 7.5%, purchasing 23,800 additional shares to reach a holding worth $23.35 million as of the filing date. This move underscores growing confidence among asset managers in the company’s core switching and routing franchises, which delivered 7.5% revenue growth in the most recent quarter. Other institutions also adjusted positions: Postrock Partners added 150 shares to reach 3,480 units; Mount Vernon Associates acquired 150 shares lifting its holding to 41,379 shares; and Wynn Capital added 150 shares for a total of 48,456 shares. Collectively, institutional and hedge fund ownership now stands at approximately 73.3%, reflecting broad support for management’s strategy to deepen recurring software subscriptions and services.