Cisco Systems shares rose about 4% before the bell on Thursday after an upbeat fourth-quarter forecast signaled further stabilization in networking equipment demand and benefits from its $28 billion deal for cybersecurity firm Splunk.

Cisco Systems shares increased by almost 4% today after an optimistic fourth-quarter projection that indicated further stabilisation in the demand for networking equipment as well as advantages from the company’s $28 billion acquisition of cybersecurity firm Splunk.

Cisco Systems Inc. gained about 5% in extended trading after giving a solid sales and profit forecast for the current quarter, indicating that customers are beginning to invest in their computer networks again.

Customers are consuming the equipment shipped over the last few quarters in line with our expectations,” Cisco’s CFO said.