#United States #San Jose #Cisco #AI Infrastructure #Earnings

Cisco Reports Impressive Q4 Earnings for Fiscal Year 2025

On August 13, 2025, Cisco Systems, Inc. announced strong earnings for the fourth quarter and the entire fiscal year 2025. The company reported a substantial revenue of $14.7 billion for the fourth quarter, marking an 8% year-over-year increase. For the fiscal year, Cisco recorded total revenues of $56.7 billion, which was a 5% rise from the previous year. This positive performance reflects the company’s solid standing within the technology sector and its effective strategic initiatives.

Key Highlights from Q4 Data

Revenue Growth: The success of Cisco is evident through its product orders, which rose by 7% year-over-year, across all geographical markets. Particularly noteworthy was the AI infrastructure segment, with orders from web-scale customers exceeding $800 million in Q4 alone, culminating in over $2 billion for FY 2025, more than double the initial target of $1 billion.

Profitability Metrics: Cisco also showcased strong profitability, achieving a GAAP gross margin of 65.7% and a non-GAAP gross margin of 68.4%, both at the upper range of their guidance. Earnings per share (EPS) were reported at $0.71 for GAAP and $0.99 for non-GAAP, surpassing forecast expectations. GAAP EPS saw a remarkable increase of 31% year-over-year, while non-GAAP EPS grew by 14%.

CEO and CFO Insights

Chuck Robbins, Cisco’s Chairman and CEO, expressed pride in the company’s performance, stating, "We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution." He emphasized that the overwhelming demand in AI infrastructure indicates a significant growth opportunity for Cisco as it continues to lead in the architectural transformations necessary for the AI era.

Mark Patterson, CFO of Cisco, echoed these sentiments, highlighting that the company’s revenue, gross margin, and operating margin were all within or above their guidance ranges, alongside solid operating cash flow. He added, "As we enter fiscal 2026, we remain focused on making strategic investments in innovation, driving durable, profitable growth and delivering shareholder value."

Results Breakdown

In the fourth quarter alone:

• - Total Revenue: $14.7 billion
• - Net Income (GAAP): $2.8 billion (31% year-over-year increase)
• - Non-GAAP Net Income: $4.0 billion (12% year-over-year increase)
• - GAAP EPS: $0.71 (31% increase from Q4 FY 2024)
• - Non-GAAP EPS: $0.99 (14% increase from Q4 FY 2024)

For the full fiscal year:

• - Total Revenue: $56.7 billion (5% increase year-over-year)
• - Net Income (GAAP): $10.5 billion (1% increase)
• - Non-GAAP Net Income: $15.2 billion (flat compared to FY 2024)
• - GAAP EPS: $2.61 (3% increase)
• - Non-GAAP EPS: $3.81 (2% increase)

Guidance Forward

Cisco has laid out its expectations for Q1 FY 2026, forecasting revenues between $14.65 billion and $14.85 billion, and projecting GAAP EPS in the range of $0.63 to $0.68, with non-GAAP EPS expected between $0.97 and $0.99. For the whole fiscal year 2026, Cisco anticipates revenues between $59.0 billion and $60.0 billion, and GAAP EPS between $2.79 and $2.91.

In conclusion, Cisco's robust performance in Q4 of FY 2025 showcases its effective strategies, strong demand for its technologies, especially in the growing AI infrastructure market, and its commitment to providing value to shareholders. The future looks bright as the company gears up to continue its momentum into fiscal 2026.