Companies /Technology

Cisco Systems Inc

NASDAQ: CSCO Communication Equipment
$112.13
▲ $4.69 (+4.37%) today
Markets closed · 3:25am ET

Q4 2025 Earnings

Reported Aug 13, 2025, 4:11pm ET · SEC source
$0.99
Beat +0.99%
EPS · est. $0.98
$14.7B
Miss −0.59%
Revenue · est. $14.8B
−7.3%
Trailing market
CSCO vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+2%Aug 13Aug 14report 4:11pm ETearnings+0.1%+0.1%
0+2%Aug 13Aug 14earnings+0.1%+0.1%
CSCO +0.1%S&P 500 +0.1%
0+1%+2%Aug 13Aug 14report 4:11pm ETearnings−0.2%+0.1%
0+1%+2%Aug 13Aug 14earnings−0.2%+0.1%
CSCO +0.1%NASDAQ −0.2%
−3%0+3%Aug 12Aug 21report 4:11pm ETearnings−1.3%−3.2%
−3%0+3%Aug 12Aug 21earnings−1.3%−3.2%
CSCO −3.2%S&P 500 −1.3%
−3%0+3%Aug 12Aug 21report 4:11pm ETearnings−2.9%−3.2%
−3%0+3%Aug 12Aug 21earnings−2.9%−3.2%
CSCO −3.2%NASDAQ −2.9%
−1.37%
Day of report
−1.56%
Next session
−4.67%
One week
−4.80%
30 days

S&P 500 over the same 30 days: +2.48%.

Did CSCO Beat Earnings? Q4 2025 Results

Cisco Systems closed fiscal 2025 on a high note, with fourth-quarter results that edged past Wall Street expectations on both the top and bottom lines. The networking giant posted non-GAAP EPS of $0.99, beating the $0.98 consensus estimate by 1.02%, while revenue of $14.67 billion topped the $14.64 billion estimate and grew 7.6% year over year, landing at the high end of the company's own guidance range. The standout driver of the quarter was surging AI infrastructure demand, with orders from webscale customers exceeding $800 million in Q4 alone and pushing the full-year total past $2 billion, more than double Cisco's original $1 billion target. Product revenue led the way with 10% growth, anchored by a 12% gain in Networking, while non-GAAP gross margins expanded to 68.4% from 67.9% a year ago, reflecting disciplined cost management. As broader AI data center supply chains navigate near-term component constraints, Cisco's order momentum suggests robust demand ahead; the company guided full-year FY2026 revenue of $59 billion to $60 billion and non-GAAP EPS of $4.00 to $4.06.

Key Takeaways
  • AI infrastructure orders from webscale customers exceeded $800 million in Q4, FY2025 total over $2 billion
  • Product revenue up 10% driven by Networking growth of 12%
  • Product orders up 7% year over year with growth across all geographies
  • Non-GAAP gross margin expansion to 68.4% from 67.9% year over year
  • Non-GAAP operating margin improvement to 34.3% from 32.5%

“We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution. The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target, indicating a massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era.”

Cisco Systems CEO, on the earnings call

Forward Guidance & Outlook

For Q1 FY2026, Cisco guided revenue of $14.65 billion to $14.85 billion, non-GAAP gross margin of 67.5%-68.5%, non-GAAP operating margin of 33%-34%, and non-GAAP EPS of $0.97-$0.99. For full-year FY2026, the company guided revenue of $59.0 billion to $60.0 billion, GAAP EPS of $2.79-$2.91, and non-GAAP EPS of $4.00-$4.06. All guidance includes the estimated impact of tariffs based on current trade policy, with an assumed non-GAAP tax rate of approximately 19%.

CSCO YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$5.0B$10.0B$15.0B$13.6B$14.7BRevenue$8.8B$9.6BGross Profit$2.6B$3.4BOperating Income$2.2B$2.8BNet Income
$0$5.0B$10.0B$15.0BRevenueGross ProfitOperating IncomeNet Income

CSCO Revenue by Segment

Networking$7.6B+12.0%
Services$3.8B+0.0%
Security$2.0B+9.0%
Collaboration$1.0B+2.0%
Observability$259.0M+4.0%

CSCO Revenue by Geography

Americas$8.8B+9.0%
EMEA$3.6B+4.0%
Asia Pacific$2.2B+7.0%

Figures from SEC filings and company reports. Not investment advice.