Cisco's Turnaround Tale Set to Continue

Sterne Agee's checks point to strong demand in wireless, security, collaboration and Cisco's data center business, which is centered on its UCS product. Demand for the company's routing, services and switching business, which make up almost three quarters of total revenue, is "muted but stable" added Wu.

TheStreet will be live-blogging Cisco's third-quarter earnings, starting at 3:45 p.m. EDT.

"We believe Cisco continues to benefit from its business realignment implemented three quarters ago, which should lead to better sales and operational execution in the quarter," explained Nomura analyst Stuart Jeffrey, in a note released earlier this week. "The recent earnings results and commentary from its tech peers have been mixed. The data points on enterprise spending have remained stable, which we think bode well for Cisco's switching business."

Switching accounted for just under a third of Cisco's total revenue during the second quarter, with services and routing making up 18% and 21%, respectively. Cisco's switching and routing businesses both enjoyed 8% year-over-year revenue increases during the quarter, while services grew 11%.