Cisco Systems Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.57%.
Did CSCO Beat Earnings? Q3 2025 Results
Cisco Systems posted a clean beat across the board in its fiscal third quarter, with revenue climbing 11.4% year over year to $14.15 billion against a consensus estimate of $14.06 billion, while non-GAAP EPS of $0.96 cleared the $0.92 analyst estimate by 4.64%, extending a run of steady execution for the networking giant. The single biggest driver of the quarter's strength was Security, where revenue surged 54% year over year to $2.01 billion, fueled by Splunk integration and organic demand, while AI infrastructure orders from webscale customers exceeded $600 million, allowing Cisco to cross its $1 billion cumulative AI orders milestone a full quarter ahead of schedule. Those <a href="https://247wallst.com/investing/2025/05/14/earnings-live-what-to-watch/">results going into earnings</a> had analysts watching AI traction closely, and management did not disappoint. Looking ahead, Cisco guided Q4 revenue of $14.50 billion to $14.70 billion with non-GAAP EPS of $0.96 to $0.98, while full-year FY2025 revenue guidance was set at $56.50 billion to $56.70 billion, with all figures incorporating estimated tariff impacts under current trade policy.
- Product orders up 20% year over year (9% excluding Splunk) with growth across all geographies and customer markets
- Security revenue surged 54% year over year driven by Splunk integration and strong demand
- AI infrastructure momentum with webscale customer orders exceeding $600 million
- Revenue, margins, and EPS all exceeded the high end of guidance ranges
- Americas revenue up 14% year over year, leading all geographic segments
“Cisco once again had strong quarterly results with clear demand for our technologies. The momentum we are seeing with AI is fueled by the power of our secure networking portfolio, our trusted global partnerships, and the value we bring to our customers.”
Cisco Systems CEO, on the earnings call
Forward Guidance & Outlook
For Q4 FY2025, Cisco guides revenue of $14.5 billion to $14.7 billion, non-GAAP gross margin of 67.5%-68.5%, non-GAAP operating margin of 33.5%-34.5%, and non-GAAP EPS of $0.96 to $0.98. GAAP EPS is expected at $0.62 to $0.67. For full-year FY2025, revenue is guided at $56.5 billion to $56.7 billion with non-GAAP EPS of $3.77 to $3.79 and GAAP EPS of $2.53 to $2.58. All margin and EPS guidance includes the estimated impact of tariffs based on current trade policy. The Q4 FY2025 effective tax rate is expected at approximately 17% (GAAP) and 18% (non-GAAP). A restructuring plan announced in August 2024 is expected to be substantially completed by the end of Q1 FY2026.
CSCO YoY Financials
CSCO Revenue by Segment
CSCO Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.