Cisco Systems Inc. has reported robust fourth quarter and fiscal year results, surpassing guidance and analyst expectations in multiple key areas. As a global leader in networking hardware, telecommunications equipment, and other high-technology services and products, Cisco continues to demonstrate its prowess in delivering shareholder value while steering its strategy toward emerging technologies such as AI infrastructure.
Cisco Systems Inc Earnings Summary
Cisco's fourth quarter revenue reached an impressive $14.7 billion, marking an 8% growth year-over-year. For the full fiscal year 2025, Cisco reported revenue of $56.7 billion, registering a 5% increase from the previous year. This growth is driven by substantial demand across all geographies and product lines, notably surpassing initial forecasts. Earnings per share (EPS) beat expectations as well, with GAAP EPS at $0.71 and non-GAAP EPS at $0.99 for the quarter.
Cisco Systems Inc Results
The table below highlights Cisco's key financial metrics, demonstrating its strong financial performance over the recent period.
| Metric | Q4 FY 2025 | YoY Change | FY 2025 | YoY Change |
|---|---|---|---|---|
| Revenue | $14.7 billion | +8% | $56.7 billion | +5% |
| GAAP EPS | $0.71 | +31% | $2.61 | +3% |
| Non-GAAP EPS | $0.99 | +14% | $3.81 | +2% |
| Operating Income (GAAP) | $3.4 billion | +32% | ||
| Cash Flow from Ops | $4.2 billion | +14% | $14.2 billion | +30% |
*Note: YoY = Year-over-Year
Revenue Breakdown
Cisco's revenue growth was propelled by notable performance across its major segments:
| Segment | Q4 Revenue Growth |
|---|---|
| Networking | +12% |
| Security | +9% |
| Observability | +4% |
| Collaboration | +2% |
The data shows that Networking remains Cisco's strongest segment, growing 12% year-over-year in Q4. This growth underscores Cisco's successful strategic positioning in critical infrastructure technologies and networking solutions pivotal for the AI era. Meanwhile, services revenue stayed flat, but strong demand for security and networking solutions drove overall product revenue up by 10%.
Key Developments
Among the significant highlights for this quarter is the dramatic rise in AI infrastructure orders, which climbed to over $800 million in Q4 alone. This brings the FY total to over $2 billion, doubling Cisco's initial target and signaling robust demand for technologically advanced networking solutions. This advancement positions Cisco as a key player in developing infrastructure for the rapidly growing AI sector.
Chuck Robbins, CEO and Chair, emphasized the strategic importance of this growth: "Our accelerated innovation and solid execution have positioned Cisco as a leader in providing the critical infrastructure for the AI era, as evidenced by the significant increase in AI infrastructure orders."
Comments from Company Officers
Mark Patterson, Cisco's Chief Financial Officer, highlighted the company's robust performance: "Revenue, gross margin, and operating margin were all at the high end of our guidance ranges, with EPS exceeding our expectations. This performance, combined with our strong cash flow, reflects the value we're delivering to our shareholders."
Dividends and Share Repurchases
Cisco declared a quarterly dividend of $0.41 per share, scheduled to be paid in October 2025, demonstrating consistent shareholder returns. In Q4, Cisco also returned $2.9 billion to stockholders through dividends and share repurchases, repurchasing around 19 million shares at an average price of $64.65 each. With $14.2 billion remaining in authorized buybacks, Cisco maintains a disciplined approach to capital allocation, balancing investment in growth initiatives with shareholder returns.
Cisco Systems Inc Stock Forecast
Based on its strong financial metrics and strategic advancements, Cisco’s stock price could experience further growth. The company’s solid revenue projections for FY 2026, between $59 billion and $60 billion, and sustainable margins set the stage for potential stock price appreciation.
High Projection : Cisco’s notable performance in AI infrastructure and robust global demand could propel its stock to a high of $67 in the coming quarters if economic conditions remain favorable.
Low Projection : If economic uncertainties or geopolitical tensions perturb market conditions, Cisco’s stock could dip to a low of $60, still maintaining its robust market capitalization and strategic positioning.
In conclusion, Cisco Systems Inc. continues to showcase formidable financial health, underpinned by strategic foresight in technological advancements and steady shareholder returns. As the company gears toward another fiscal year, it stands well-positioned to capture opportunities within the AI and digital transformation domains, bolstered by its strong balance sheet and leadership in networking innovations.
