Services revenue was $2.5 billion for the quarter, up 13 percent year-over-year.

Analysts have been upbeat on Cisco recently. Last quarter the company hit its $1 billion target for its expense-reduction plan, which originally was not set to be attained until the next quarter.

Revenue edged out the $11.57 billion forecast by analysts surveyed by Thomson Reuters. Excluding certain one-time charges, earnings per share of $0.48 were slightly higher than analysts' forecast for EPS of $0.47. In after-market trading immediately after the results were released, Cisco shares ticked up by $0.07 to $18.78.

However the economy, especially in Europe, cast shadows on Cisco's results as well as its outlook for the rest of the year. Sales for the videoconferencing business, for example, were flat year over year as the economy put a squeeze on corporations and the public sector, noted Chambers.