On August 13, 2025, Cisco Systems Inc. (NASDAQ: CSCO) released its earnings report for the fourth quarter and fiscal year 2025, showcasing robust growth across several key metrics. The company's performance not only met but exceeded market expectations, highlighting its strong position in the tech sector, particularly in AI infrastructure.

1. Stellar Quarterly Performance

Revenue and Earnings Highlights:

In the fourth quarter, Cisco reported revenue of $14.7 billion, marking an 8% increase year over year. The company's net income stood at $2.8 billion, translating to a GAAP earnings per share (EPS) of $0.71, which represents a 31% increase from the previous year. Additionally, the non-GAAP EPS reached $0.99, reflecting a 14% year-over-year growth.

Key Metrics for Q4 FY 2025:

Revenue: $14.7 billion

GAAP EPS: $0.71 (up 31% YoY)

Non-GAAP EPS: $0.99 (up 14% YoY)

GAAP Gross Margin: 65.7%

Non-GAAP Gross Margin: 68.4%

Chuck Robbins, Chairman and CEO of Cisco, expressed pride in the company's performance, stating, "We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution."

2. Fiscal Year Overview

For the entire fiscal year 2025, Cisco’s revenue reached $56.7 billion, an increase of 5% year over year. The company's GAAP net income rose to $10.5 billion, yielding a GAAP EPS of $2.61, up 3% from the prior year. In contrast, the non-GAAP net income remained stable at $15.2 billion, with a corresponding non-GAAP EPS of $3.81, a 2% increase.

Key Metrics for FY 2025:

Revenue: $56.7 billion (up 5% YoY)

GAAP EPS: $2.61 (up 3% YoY)

Non-GAAP EPS: $3.81 (up 2% YoY)

Mark Patterson, CFO of Cisco, emphasized the company's commitment to innovation and shareholder value, stating, "In Q4, revenue, gross margin, and operating margin were at the high end of our guidance ranges, earnings per share was above the guidance range, and we delivered solid operating cash flow."

3. Order Growth and AI Infrastructure Demand

One of the standout achievements for Cisco in FY 2025 was the significant demand for its AI infrastructure solutions. Orders from webscale customers exceeded $800 million in Q4 alone, contributing to a total of over $2 billion for the fiscal year, more than double the initial target of $1 billion. This surge indicates a strong market appetite for Cisco’s AI-driven technologies, positioning the company as a leader in the architectural shift needed for the AI era.

4. Geographic Segment Performance

Cisco's growth was not limited to specific sectors; it saw product orders increase by 7% year over year across all geographic regions. Key performance highlights include:

Americas: Revenue up 9%

EMEA (Europe, Middle East, and Africa): Revenue up 4%

APJC (Asia Pacific, Japan, and China): Revenue up 7%

5. Shareholder Returns and Future Guidance

In a move to reward shareholders, Cisco declared a quarterly dividend of $0.41 per share, set to be paid on October 22, 2025.

Looking ahead, Cisco provided guidance for the first quarter of fiscal 2026, projecting revenue between $14.65 billion and $14.85 billion, with a GAAP EPS range of $0.63 to $0.68 and a non-GAAP EPS between $0.97 to $0.99. For the full fiscal year 2026, Cisco anticipates revenue between $59 billion and $60 billion and non-GAAP EPS of $4.00 to $4.06.

6. Conclusion

Cisco's fourth-quarter and fiscal year results reflect a successful strategy focused on innovation and leveraging emerging technologies like AI. With strong financial performance, a commitment to shareholder returns, and optimistic future guidance, Cisco continues to solidify its stature as a leader in the technology sector, ready to meet the evolving needs of its customers in the digital age.

Original press release