#USA #San Jose #AI Technology #Cisco Systems #Q3 Earnings

Cisco’s Q3 Earnings Report Highlights

On May 14, 2025, Cisco Systems, Inc. released its financial results for the third quarter of Fiscal Year 2025. The company reported a significant year-over-year increase in revenue, with a reported total of $14.1 billion, reflecting an impressive growth of 11% compared to the same period in the previous fiscal year. This success marks Cisco's ongoing commitment to innovation and operational excellence.

Growth Across All Segments

Cisco observed a robust demand for its products across various geographic regions and customer sectors. Product orders soared by 20%, with a notable 9% increase when excluding the contributions from Splunk. This growth was most evident in Cisco’s AI infrastructure orders, which exceeded $600 million – a target achieved one quarter earlier than expected. According to Chuck Robbins, CEO of Cisco, this momentum is fueled by the power of their secure networking portfolio, coupled with their strong global partnerships and the value they deliver to customers.

Financial Performance Details

The financial results from the quarter provide insights into Cisco's operational strength:

• - Earnings Per Share (EPS): GAAP EPS reached $0.62, up from $0.46 last year, marking a striking 35% increase. Non-GAAP EPS also climbed to $0.96, reflecting a 9% rise.
• - Net Income: For Q3 FY 2025, Cisco's net income was reported at $2.5 billion under GAAP standards, illustrating a year-over-year growth of 32%. The non-GAAP net income stood at $3.8 billion, up 8% from the previous year.
• - Revenue Breakdown: Cisco’s revenue generated from product sales totaled approximately $10.37 billion, showing a 15% increase from the previous fiscal year. Service revenue also grew by 3% to reach $3.77 billion.

Geographic Performance

Breaking down the revenue by segments:

• - Americas: Revenue increased by 14%, amounting to $8.38 billion.
• - EMEA (Europe, Middle East, and Africa): Revenue was up 8%, reaching $3.73 billion.
• - APJC (Asia Pacific, Japan, and China): This region saw a growth of 9%, contributing $2.03 billion to the total revenue.

Future Outlook and Guidance

Looking ahead, Cisco has provided optimistic guidance for the next quarter (Q4 FY 2025). The company anticipates revenue between $14.5 billion and $14.7 billion, along with GAAP EPS projected to range from $0.62 to $0.67, and non-GAAP EPS expected between $0.96 and $0.98. Likewise, forecasts for the entire fiscal year 2025 estimate revenue will fall between $56.5 billion and $56.7 billion.

In summary, Cisco’s Q3 results highlight the company's resilience and its ability to adapt to changing market demands, particularly within the AI arena. Their strong financial management, coupled with a solid performance across all regions, underscores Cisco's positioned to maintain continued growth in the increasingly competitive tech landscape. As the company continues to innovate and integrate new technologies, stakeholders will be keenly watching their performance and how effectively they can manage future challenges amid a dynamic economic backdrop.