The company said total orders rose 4 percent during the quarter. Orders in the Americas grew 7 percent. The company said government spending improved as local and state governments and education departments spent more money. Orders from the federal government decreased.
"We believe this balanced approach to growth is a positive signal for the U.S. economy going forward," Chambers said during a conference call. Orders from emerging markets like Russia, Brazil, China, and Mexico improved and the company said it is seeing some signs of improvement in Europe.
"You're beginning to see Europe bottom out with the exception of the South," said Chambers.
Cisco expects further signs of a slow and steady recovery in the fiscal fourth quarter. The company forecast adjusted net income of 50 to 52 cents per share and said revenue will grow 4 to 7 percent, to $12.16 billion to $12.51 billion.
Analysts expect income of 50 cents per share and $12.46 billion in revenue.