CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2025 EARNINGS

Rhea-AI Summary

Cisco (NASDAQ:CSCO) reported strong Q4 FY2025 results with revenue of $14.7 billion, up 8% year-over-year, and FY2025 revenue of $56.7 billion, up 5%. Q4 GAAP EPS reached $0.71 (up 31%) and non-GAAP EPS hit $0.99 (up 14%). The company's AI Infrastructure orders from webscale customers exceeded $800 million in Q4, bringing FY2025 total to over $2 billion, doubling initial targets.

For FY2026, Cisco projects revenue between $59.0-$60.0 billion and non-GAAP EPS of $4.00-$4.06. The company maintained its quarterly dividend at $0.41 per share. Geographic performance showed growth across all regions: Americas up 9%, EMEA up 4%, and APJC up 7%.

Positive

• Q4 revenue grew 8% YoY to $14.7B, exceeding guidance
• AI Infrastructure orders doubled initial $1B target, reaching $2B in FY2025
• Q4 GAAP EPS increased 31% YoY to $0.71
• Strong growth across all geographic segments
• Operating cash flow increased 30% YoY to $14.2B for FY2025
• Gross margins improved to 65.7% GAAP and 68.4% non-GAAP

Negative

• Services revenue remained flat year-over-year
• Cash and investments decreased to $16.1B from $17.9B year-over-year
• FY2025 non-GAAP net income remained flat compared to FY2024

Insights

Financial Analyst

Cisco delivered strong Q4 results with AI infrastructure orders doubling targets, signaling positive momentum into FY2026.

Cisco has delivered impressive Q4 results that exceeded expectations across key metrics. The 8% revenue growth to $14.7 billion outpaced previous quarters and landed at the high end of guidance. What's particularly telling is the 10% product revenue growth, which reverses previous sluggishness and suggests customers are actively investing in Cisco's technology stack again.

The company's pivot toward AI infrastructure is paying significant dividends. AI infrastructure orders from webscale customers reached $800 million in Q4 alone, bringing the fiscal year total to $2 billion – double their original target. This validates both market demand and Cisco's execution in positioning itself as a critical infrastructure provider for the AI revolution.

Margin performance was equally strong with non-GAAP gross margin of 68.4% and operating margin of 34.3%, reflecting disciplined execution and favorable product mix. The 14% EPS growth (non-GAAP) to $0.99 substantially outpaced revenue growth, indicating effective operational leverage and cost control.

The FY2026 guidance signals continued momentum with projected revenue growth of 4% to 6% and EPS growth of 5% to 7%. This outlook, coupled with the $43.5 billion in remaining performance obligations (up 6%), provides solid visibility into future performance.

Segment performance shows particular strength in Networking (up 12%) and Security (up 9%), indicating Cisco is capitalizing on network infrastructure refresh cycles and heightened security concerns. The balanced geographic growth across Americas (9%), EMEA (4%), and APJC (7%) demonstrates broad-based demand rather than isolated strength.

The company's financial position remains robust with $16.1 billion in cash and investments, enabling continued shareholder returns through dividends ($0.41 per share) and share repurchases ($1.3 billion in Q4). With $14.2 billion remaining in the repurchase authorization, Cisco maintains significant flexibility for capital allocation.

Technology Strategist

Cisco's AI infrastructure success and strong networking growth signal effective strategic pivot toward next-generation enterprise needs.

Cisco's Q4 results reveal a company successfully navigating the transition to an AI-centric technology landscape. The standout metric is clearly the AI infrastructure orders exceeding $2 billion for FY2025, doubling the original target. This isn't merely incremental growth – it represents Cisco positioning itself at the foundation of the AI transformation sweeping through enterprises.

The 12% growth in Networking revenue ($7.6 billion in Q4) indicates Cisco is effectively leveraging its core competency while evolving its product portfolio. This growth suggests enterprises are upgrading networking infrastructure to handle increased data loads and connectivity requirements driven by AI workloads and distributed computing.

The Security segment's 9% growth to $1.95 billion reflects Cisco's successful integration of security capabilities throughout their portfolio – a critical differentiation as organizations face increasingly sophisticated threats across expanded attack surfaces. The modest but positive 4% growth in Observability shows traction in a strategically important area as enterprises require comprehensive visibility across complex environments.

Product orders growing at 7% year-over-year with increases across all geographies indicates a broad-based acceptance of Cisco's technology vision rather than isolated pockets of success. This geographic diversity provides resilience against regional economic fluctuations.

From a technical evolution perspective, the RPO (Remaining Performance Obligations) growth of 6% to $43.5 billion with product RPO up 8% signals customers are making longer-term commitments to Cisco's technology roadmap – a vote of confidence in their strategic direction.

Looking ahead, the fiscal 2026 guidance projecting 4-6% revenue growth indicates Cisco expects to maintain momentum despite macroeconomic uncertainties. This suggests their portfolio evolution toward higher-growth segments like AI infrastructure, advanced security, and observability is compensating for potential softness in traditional networking hardware.

SAN JOSE, Calif., Aug. 13, 2025 /PRNewswire/ -- 

News Summary:

• Strong topline performance at the high end of our guidance ranges:
  • Q4 revenue of $14.7 billion, up 8% year over year
  • FY 2025 revenue of $56.7 billion, up 5% year over year
• Q4 product orders up 7% year over year with growth across all geographies, demonstrating robust demand for Cisco's technologies
• AI Infrastructure orders taken from webscale customers exceeded $800 million, bringing the FY 2025 total to over $2 billion, more than double the original $1 billion target
• Strong profitability in Q4:
  • GAAP gross margin of 65.7% and non-GAAP gross margin of 68.4%, at the high end of our guidance range
  • GAAP EPS of $0.71 and non-GAAP EPS of $0.99, above the high end of our guidance range
• Q4 FY 2025 Results:
  • Revenue: $14.7 billion
    • Increase of 8% year over year
  • Earnings per Share: GAAP: $0.71; Non-GAAP: $0.99
    • GAAP EPS increased 31% year over year
    • Non-GAAP EPS increased 14% year over year
• FY 2025 Results:
  • Revenue: $56.7 billion 
    • Increase of 5% year over year
  • Earnings per Share: GAAP: $2.61; Non-GAAP: $3.81
    • GAAP EPS increased 3% year over year
    • Non-GAAP EPS increased 2% year over year
  • Q1 FY 2026 Guidance ⁽¹⁾:
    • Revenue: $14.65 billion to $14.85 billion
    • Earnings per Share: GAAP: $0.63 to $0.68; Non-GAAP: $0.97 to $0.99
  • FY 2026 Guidance ⁽¹⁾:
    • Revenue: $59.0 billion to $60.0 billion
    • Earnings per Share: GAAP: $2.79 to $2.91; Non-GAAP: $4.00 to $4.06

(1) Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Cisco today reported fourth quarter and fiscal year results for the period ended July 26, 2025. Cisco reported fourth quarter revenue of $14.7 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.8 billion or $0.71 per share, and non-GAAP net income of $4.0 billion or $0.99 per share.

"We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution," said Chuck Robbins, chair and CEO of Cisco. "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." 

"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," said Mark Patterson, CFO of Cisco.  "As we enter fiscal 2026, we remain focused on making strategic investments in innovation, driving durable, profitable growth and delivering shareholder value."

Q4 GAAP Results
		Q4 FY 2025		Q4 FY 2024		Vs. Q4 FY 2024
Revenue		$             14.7   billion		$             13.6   billion		8 %
Net Income		$               2.8   billion		$               2.2   billion		31 %
Diluted Earnings per Share (EPS)		$                      0.71		$                      0.54		31 %
Q4 Non-GAAP Results
		Q4 FY 2025		Q4 FY 2024		Vs. Q4 FY 2024
Net Income		$               4.0   billion		$               3.5   billion		12 %
EPS		$                      0.99		$                      0.87		14 %
Fiscal Year GAAP Results
		FY 2025		FY 2024		Vs. FY 2024
Revenue		$             56.7   billion		$             53.8   billion		5 %
Net Income		$             10.5   billion		$             10.3   billion		1 %
EPS		$                      2.61		$                      2.54		3 %
Fiscal Year Non-GAAP Results
		FY 2025		FY 2024		Vs. FY 2024
Net Income		$             15.2   billion		$             15.2   billion		— %
EPS		$                      3.81		$                      3.73		2 %

 

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."

Cisco Declares Quarterly Dividend

Cisco has declared a quarterly dividend of $0.41 per common share to be paid on October 22, 2025, to all stockholders of record as of the close of business on October 3, 2025. Future dividends will be subject to Board approval.

Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q4 FY 2025 Highlights 

Revenue -- Total revenue was $14.7 billion, up 8%, with product revenue up 10% and services revenue flat.

Revenue by geographic segment was: Americas up 9%, EMEA up 4%, and APJC up 7%. Product revenue performance reflected growth in Networking up 12%, Security up 9%, Observability up 4%, and Collaboration up 2%.

Gross Margin -- On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.7%, 64.7%, and 68.3%, respectively, as compared with 64.4%, 63.0%, and 67.8%, respectively, in the fourth quarter of fiscal 2024.

On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 68.4%, 67.5%, and 70.8%, respectively, as compared with 67.9%, 67.0%, and 70.3%, respectively, in the fourth quarter of fiscal 2024.

Total gross margins by geographic segment were: 68.0% for the Americas, 71.7% for EMEA and 64.2% for APJC.

Operating Expenses -- On a GAAP basis, operating expenses were $6.2 billion, flat year over year, and were 42.2% of revenue. Non-GAAP operating expenses were $5.0 billion, up 4%, and were 34.1% of revenue.

Operating Income -- GAAP operating income was $3.4 billion, up 32%, with GAAP operating margin of 23.5%. Non-GAAP operating income was $5.0 billion, up 13%, with non-GAAP operating margin at 34.3%.

Provision for Income Taxes -- The GAAP tax provision rate was 15.8%. The non-GAAP tax provision rate was 18.1%.

Net Income and EPS -- On a GAAP basis, net income was $2.8 billion, an increase of 31%, and EPS was $0.71, an increase of 31%. On a non-GAAP basis, net income was $4.0 billion, an increase of 12%, and EPS was $0.99, an increase of 14%. 

Cash Flow from Operating Activities -- $4.2 billion for the fourth quarter of fiscal 2025, an increase of 14% compared with $3.7 billion for the fourth quarter of fiscal 2024.

FY 2025 Highlights

Revenue -- Total revenue was $56.7 billion, an increase of 5%.

Net Income and EPS -- On a GAAP basis, net income was $10.5 billion, an increase of 1%, and EPS was $2.61, an increase of 3%. On a non-GAAP basis, net income was $15.2 billion, flat compared to fiscal 2024, and EPS was $3.81, an increase of 2%.

Cash Flow from Operating Activities -- $14.2 billion for fiscal 2025, an increase of 30% compared with $10.9 billion for fiscal 2024.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments -- $16.1 billion at the end of the fourth quarter of fiscal 2025, compared with $15.6 billion at the end of the third quarter of fiscal 2025, and compared with $17.9 billion at the end of fiscal 2024.

Remaining Performance Obligations (RPO) -- $43.5 billion, up 6% in total, with 50% of this amount expected to be recognized as revenue over the next 12 months. Product RPO was up 8% and services RPO was up 5%.

Deferred Revenue -- $28.8 billion, up 1% in total, with deferred product revenue up 2%. Deferred services revenue was flat. 

Capital Allocation -- In the fourth quarter of fiscal 2025, we returned $2.9 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.41 per common share, or $1.6 billion, and repurchased approximately 19 million shares of common stock under our stock repurchase program at an average price of $64.65 per share for an aggregate purchase price of $1.3 billion. The remaining authorized amount for stock repurchases under the program is $14.2 billion with no termination date.

Guidance

Cisco estimates the following results for the first quarter of fiscal 2026:

Q1 FY 2026
Revenue		$14.65 billion - $14.85 billion
Non-GAAP gross margin		67.5% - 68.5%
Non-GAAP operating margin		33% - 34%
Non-GAAP EPS		$0.97 - $0.99

Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Cisco estimates that GAAP EPS will be $0.63 to $0.68 for the first quarter of fiscal 2026.

Cisco estimates the following results for fiscal 2026:

FY 2026
Revenue		$59.0 billion - $60.0 billion
Non-GAAP EPS		$4.00 - $4.06

Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Cisco estimates that GAAP EPS will be $2.79 to $2.91 for fiscal 2026.

Our Q1 FY 2026 and FY 2026 guidance assumes an effective tax provision rate of approximately 18% for GAAP and approximately 19% for non-GAAP results.

A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."

Editor's Notes:

• Q4 fiscal year 2025 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, August 13, 2025 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).
• Conference call replay will be available from 4:00 p.m. Pacific Time, August 13, 2025 to 10:00 p.m. Pacific Time, August 19, 2025 at 1-800-391-9853 (United States) or 1-203-369-3269 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.
• Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 13, 2025. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

 

CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per-share amounts) (Unaudited)
	Three Months Ended				Fiscal Year Ended
	July 26, 2025		July 27, 2024		July 26, 2025		July 27, 2024
REVENUE:
Product	$      10,886		$         9,858		$      41,608		$       39,253
Services	3,787		3,784		15,046		14,550
Total revenue	14,673		13,642		56,654		53,803
COST OF SALES:
Product	3,839		3,644		14,766		14,339
Services	1,199		1,217		4,743		4,636
Total cost of sales	5,038		4,861		19,509		18,975
GROSS MARGIN	9,635		8,781		37,145		34,828
OPERATING EXPENSES:
Research and development	2,380		2,179		9,300		7,983
Sales and marketing	2,818		2,841		10,966		10,364
General and administrative	706		763		2,992		2,813
Amortization of purchased intangible assets	254		268		1,028		698
Restructuring and other charges	35		112		744		789
Total operating expenses	6,193		6,163		25,030		22,647
OPERATING INCOME	3,442		2,618		12,115		12,181
Interest income	227		270		1,001		1,365
Interest expense	(368)		(418)		(1,593)		(1,006)
Other income (loss), net	53		(74)		(68)		(306)
Interest and other income (loss), net	(88)		(222)		(660)		53
INCOME BEFORE PROVISION FOR INCOME TAXES	3,354		2,396		11,455		12,234
Provision for income taxes	531		234		1,002		1,914
NET INCOME	$         2,823		$         2,162		$      10,453		$       10,320
Net income per share:
Basic	$           0.71		$           0.54		$           2.63		$           2.55
Diluted	$           0.71		$           0.54		$           2.61		$           2.54
Shares used in per-share calculation:
Basic	3,960		4,018		3,976		4,043
Diluted	3,992		4,035		3,998		4,062

 

CISCO SYSTEMS, INC. REVENUE BY SEGMENT (In millions, except percentages)
		July 26, 2025
		Three Months Ended				Fiscal Year Ended
		Amount		Y/Y%		Amount		Y/Y%
Revenue:
Americas		$         8,822		9 %		$       33,656		5 %
EMEA		3,645		4 %		14,824		5 %
APJC		2,206		7 %		8,174		6 %
Total		$       14,673		8 %		$       56,654		5 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC. GROSS MARGIN PERCENTAGE BY SEGMENT (In percentages)
		July 26, 2025
		Three Months Ended		Fiscal Year Ended
Gross Margin Percentage:
Americas		68.0 %		68.2 %
EMEA		71.7 %		71.1 %
APJC		64.2 %		66.4 %

 

CISCO SYSTEMS, INC. REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES (In millions, except percentages)
		July 26, 2025
		Three Months Ended				Fiscal Year Ended
		Amount		Y/Y %		Amount		Y/Y %
Revenue:
Networking		$         7,633		12 %		$       28,304		(3) %
Security		1,952		9 %		8,094		59 %
Collaboration		1,042		2 %		4,154		1 %
Observability		259		4 %		1,055		26 %
Total Product		10,886		10 %		41,608		6 %
Services		3,787		— %		15,046		3 %
Total		$       14,673		8 %		$       56,654		5 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
	July 26, 2025		July 27, 2024
ASSETS
Current assets:
Cash and cash equivalents	$           8,346		$           7,508
Investments	7,764		10,346
Accounts receivable, net of allowance of $69 at July 26, 2025 and $87 at July 27, 2024	6,701		6,685
Inventories	3,095		3,373
Financing receivables, net	3,061		3,338
Other current assets	6,374		5,612
Total current assets	35,341		36,862
Property and equipment, net	2,113		2,090
Financing receivables, net	3,466		3,376
Goodwill	59,136		58,660
Purchased intangible assets, net	9,175		11,219
Deferred tax assets	7,274		6,262
Other assets	6,059		5,944
TOTAL ASSETS	$       122,564		$       124,413
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	$           5,232		$         11,341
Accounts payable	2,528		2,304
Income taxes payable	1,857		1,439
Accrued compensation	3,611		3,608
Deferred revenue	16,416		16,249
Other current liabilities	5,420		5,643
Total current liabilities	35,064		40,584
Long-term debt	22,861		19,621
Income taxes payable	2,165		3,985
Deferred revenue	12,363		12,226
Other long-term liabilities	2,995		2,540
Total liabilities	75,448		78,956
Total equity	47,116		45,457
TOTAL LIABILITIES AND EQUITY	$       122,564		$       124,413

 

CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
	Three Months Ended				Fiscal Year Ended
	July 26, 2025		July 27, 2024		July 26, 2025		July 27, 2024
Cash flows from operating activities:
Net income	$        2,823		$        2,162		$      10,453		$      10,320
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and other	635		823		2,811		2,507
Share-based compensation expense	948		800		3,641		3,074
Provision for receivables	7		15		24		34
Deferred income taxes	(259)		(727)		(1,051)		(972)
(Gains) losses on divestitures, investments and other, net	(90)		(9)		(38)		215
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Accounts receivable	(1,428)		(1,575)		(22)		(289)
Inventories	(263)		(255)		278		275
Financing receivables	(291)		(16)		214		76
Other assets	(407)		(289)		(923)		(671)
Accounts payable	267		210		257		(90)
Income taxes, net	163		684		(1,839)		(4,539)
Accrued compensation	378		396		(53)		(696)
Deferred revenue	772		1,009		248		1,220
Other liabilities	979		502		193		416
Net cash provided by operating activities	4,234		3,730		14,193		10,880
Cash flows from investing activities:
Purchases of investments	(1,523)		(1,186)		(4,589)		(4,230)
Proceeds from sales of investments	415		262		2,643		4,136
Proceeds from maturities of investments	958		563		4,943		6,367
Acquisitions, net of cash and cash equivalents acquired and divestitures	—		(120)		(291)		(25,994)
Purchases of investments in privately held companies	(118)		(202)		(383)		(284)
Return of investments in privately held companies	198		56		306		202
Acquisition of property and equipment	(217)		(198)		(905)		(670)
Other	14		(3)		9		(5)
Net cash provided by (used in) investing activities	(273)		(828)		1,733		(20,478)
Cash flows from financing activities:
Issuances of common stock	416		367		736		714
Repurchases of common stock - repurchase program	(1,252)		(2,015)		(6,000)		(5,787)
Shares repurchased for tax withholdings on vesting of restricted stock units	(312)		(227)		(1,222)		(992)
Short-term borrowings, original maturities of 90 days or less, net	448		(1,069)		(31)		478
Issuances of debt	1,904		7,659		19,292		31,818
Repayments of debt	(3,528)		(7,631)		(22,073)		(9,826)
Repayments of Splunk convertible debt, net	—		—		—		(3,140)
Dividends paid	(1,625)		(1,606)		(6,437)		(6,384)
Other	—		15		(80)		(37)
Net cash provided by (used in) financing activities	(3,949)		(4,507)		(15,815)		6,844
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(20)		8		(43)		(31)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	(8)		(1,597)		68		(2,785)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period	8,918		10,439		8,842		11,627
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period	$        8,910		$        8,842		$        8,910		$        8,842
Supplemental cash flow information:
Cash paid for interest	$           130		$           233		$        1,500		$           583
Cash paid for income taxes, net	$           627		$           276		$        3,892		$        7,426

 

CISCO SYSTEMS, INC. REMAINING PERFORMANCE OBLIGATIONS (In millions, except percentages)
	July 26, 2025				April 26, 2025				July 27, 2024
	Amount		Y/Y %		Amount		Y/Y %		Amount		Y/Y %
Product	$    21,572		8 %		$    20,752		10 %		$    20,055		27 %
Services	21,961		5 %		20,915		5 %		20,993		10 %
Total	$    43,533		6 %		$    41,667		7 %		$    41,048		18 %

We expect 50% of total RPO at July 26, 2025 to be recognized as revenue over the next 12 months.

 

CISCO SYSTEMS, INC. DEFERRED REVENUE (In millions)
	July 26, 2025		April 26, 2025		July 27, 2024
Deferred revenue:
Product	$       13,490		$       13,170		$       13,219
Services	15,289		14,821		15,256
Total	$       28,779		$       27,991		$       28,475
Reported as:
Current	$       16,416		$       16,081		$       16,249
Noncurrent	12,363		11,910		12,226
Total	$       28,779		$       27,991		$       28,475

 

CISCO SYSTEMS, INC. DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK (In millions, except per-share amounts)
		DIVIDENDS				STOCK REPURCHASE PROGRAM						TOTAL
Quarter Ended		Per Share		Amount		Shares		Weighted- Average Price per Share		Amount		Amount
Fiscal 2025
July 26, 2025		$             0.41		$          1,625		19		$          64.65		$          1,252		$          2,877
April 26, 2025		$             0.41		$          1,627		25		$          59.78		$          1,504		$          3,131
January 25, 2025		$             0.40		$          1,593		21		$          58.58		$          1,236		$          2,829
October 26, 2024		$             0.40		$          1,592		40		$          49.56		$          2,003		$          3,595
Fiscal 2024
July 27, 2024		$             0.40		$          1,606		43		$          46.80		$          2,002		$          3,608
April 27, 2024		$             0.40		$          1,615		26		$          49.22		$          1,256		$          2,871
January 27, 2024		$             0.39		$          1,583		25		$          49.54		$          1,254		$          2,837
October 28, 2023		$             0.39		$          1,580		23		$          54.53		$          1,252		$          2,832

 

CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES   GAAP TO NON-GAAP NET INCOME (In millions)
	Three Months Ended				Fiscal Year Ended
	July 26, 2025		July 27, 2024		July 26, 2025		July 27, 2024
GAAP net income	$        2,823		$        2,162		$      10,453		$      10,320
Adjustments to cost of sales:
Share-based compensation expense	150		133		584		514
Amortization of acquisition-related intangible assets	233		331		1,150		936
Acquisition/divestiture-related costs	13		21		66		34
Supplier component remediation charge (adjustment)	—		—		(7)		—
Total adjustments to GAAP cost of sales	396		485		1,793		1,484
Adjustments to operating expenses:
Share-based compensation expense	797		660		3,019		2,537
Amortization of acquisition-related intangible assets	255		268		1,029		698
Acquisition/divestiture-related costs	104		297		791		700
Russia-Ukraine war costs	—		—		—		(12)
Significant asset impairments and restructurings	35		112		744		789
Total adjustments to GAAP operating expenses	1,191		1,337		5,583		4,712
Adjustments to interest and other income (loss), net:
Russia-Ukraine war costs	—		49		—		49
(Gains) and losses on investments	(115)		(32)		(187)		100
Total adjustments to GAAP interest and other income (loss), net	(115)		17		(187)		149
Total adjustments to GAAP income before provision for income taxes	1,472		1,839		7,189		6,345
Income tax effect of non-GAAP adjustments	(344)		(315)		(1,600)		(1,360)
Significant tax matters (1)	—		(155)		(829)		(155)
Total adjustments to GAAP provision for income taxes	(344)		(470)		(2,429)		(1,515)
Non-GAAP net income	$        3,951		$        3,531		$      15,213		$      15,150

(1) The fiscal year ended July 26, 2025 includes a $720 million benefit due to an August 2024 U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.

 

CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES   GAAP TO NON-GAAP EPS
	Three Months Ended				Fiscal Year Ended
	July 26, 2025		July 27, 2024		July 26, 2025		July 27, 2024
GAAP EPS	$           0.71		$           0.54		$           2.61		$           2.54
Adjustments to GAAP:
Share-based compensation expense	0.24		0.20		0.90		0.75
Amortization of acquisition-related intangible assets	0.12		0.15		0.55		0.40
Acquisition/divestiture-related costs	0.03		0.08		0.21		0.18
Russia-Ukraine war costs	—		0.01		—		0.01
Significant asset impairments and restructurings	0.01		0.03		0.19		0.19
(Gains) and losses on investments	(0.03)		(0.01)		(0.05)		0.02
Income tax effect of non-GAAP adjustments	(0.09)		(0.08)		(0.40)		(0.33)
Significant tax matters	—		(0.04)		(0.21)		(0.04)
Non-GAAP EPS	$           0.99		$           0.87		$           3.81		$           3.73

Amounts may not sum due to rounding.

 

CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES   GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME (In millions, except percentages)
	Three Months Ended
	July 26, 2025
	Product Gross Margin		Services Gross Margin		Total Gross Margin		Operating Expenses		Y/Y		Operating Income		Y/Y		Interest and other income (loss), net		Net Income		Y/Y
GAAP amount	$ 7,047		$ 2,588		$ 9,635		$ 6,193		— %		$ 3,442		32 %		$  (88)		$ 2,823		31 %
% of revenue	64.7 %		68.3 %		65.7 %		42.2 %				23.5 %				(0.6) %		19.2 %
Adjustments to GAAP amounts:
Share-based compensation expense	66		84		150		797				947				—		947
Amortization of acquisition-related intangible assets	233		—		233		255				488				—		488
Acquisition/divestiture-related costs	2		11		13		104				117				—		117
Significant asset impairments and restructurings	—		—		—		35				35				—		35
(Gains) and losses on investments	—		—		—		—				—				(115)		(115)
Income tax effect/significant tax matters	—		—		—		—				—				—		(344)
Non-GAAP amount	$ 7,348		$ 2,683		$ 10,031		$ 5,002		4 %		$ 5,029		13 %		$  (203)		$ 3,951		12 %
% of revenue	67.5 %		70.8 %		68.4 %		34.1 %				34.3 %				(1.4) %		26.9 %

 

	Three Months Ended
	July 27, 2024
	Product Gross Margin		Services Gross Margin		Total Gross Margin		Operating Expenses		Operating Income		Interest and other income (loss), net		Net Income
GAAP amount	$ 6,214		$ 2,567		$ 8,781		$ 6,163		$ 2,618		$  (222)		$ 2,162
% of revenue	63.0 %		67.8 %		64.4 %		45.2 %		19.2 %		(1.6) %		15.8 %
Adjustments to GAAP amounts:
Share-based compensation expense	57		76		133		660		793		—		793
Amortization of acquisition-related intangible assets	331		—		331		268		599		—		599
Acquisition/divestiture-related costs	5		16		21		297		318		—		318
Russia-Ukraine war costs	—		—		—		—		—		49		49
Significant asset impairments and restructurings	—		—		—		112		112		—		112
(Gains) and losses on investments	—		—		—		—		—		(32)		(32)
Income tax effect/significant tax matters	—		—		—		—		—		—		(470)
Non-GAAP amount	$ 6,607		$ 2,659		$ 9,266		$ 4,826		$ 4,440		$  (205)		$ 3,531
% of revenue	67.0 %		70.3 %		67.9 %		35.4 %		32.5 %		(1.5) %		25.9 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES   GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME (In millions, except percentages)
	Fiscal Year Ended
	July 26, 2025
	Product Gross Margin		Services Gross Margin		Total Gross Margin		Operating Expenses		Y/Y		Operating Income		Y/Y		Interest and other income (loss), net		Net Income		Y/Y
GAAP amount	$ 26,842		$ 10,303		$ 37,145		$ 25,030		11 %		$ 12,115		(1) %		$  (660)		$ 10,453		1 %
% of revenue	64.5 %		68.5 %		65.6 %		44.2 %				21.4 %				(1.2) %		18.5 %
Adjustments to GAAP amounts:
Share-based compensation expense	255		329		584		3,019				3,603				—		3,603
Amortization of acquisition-related intangible assets	1,150		—		1,150		1,029				2,179				—		2,179
Acquisition/divestiture-related costs	14		52		66		791				857				—		857
Supplier component remediation charge (adjustment)	(7)		—		(7)		—				(7)				—		(7)
Significant asset impairments and restructurings	—		—		—		744				744				—		744
(Gains) and losses on investments	—		—		—		—				—				(187)		(187)
Income tax effect/significant tax matters	—		—		—		—				—				—		(2,429)
Non-GAAP amount	$ 28,254		$ 10,684		$ 38,938		$ 19,447		8 %		$ 19,491		6 %		$  (847)		$ 15,213		— %
% of revenue	67.9 %		71.0 %		68.7 %		34.3 %				34.4 %				(1.5) %		26.9 %

 

	Fiscal Year Ended
	July 27, 2024
	Product Gross Margin		Services Gross Margin		Total Gross Margin		Operating Expenses		Operating Income		Interest and other income (loss), net		Net Income
GAAP amount	$ 24,914		$ 9,914		$ 34,828		$ 22,647		$ 12,181		$   53		$ 10,320
% of revenue	63.5 %		68.1 %		64.7 %		42.1 %		22.6 %		0.1 %		19.2 %
Adjustments to GAAP amounts:
Share-based compensation expense	214		300		514		2,537		3,051		—		3,051
Amortization of acquisition-related intangible assets	936		—		936		698		1,634		—		1,634
Acquisition/divestiture-related costs	10		24		34		700		734		—		734
Russia-Ukraine war costs	—		—		—		(12)		(12)		49		37
Significant asset impairments and restructurings	—		—		—		789		789		—		789
(Gains) and losses on investments	—		—		—		—		—		100		100
Income tax effect/significant tax matters	—		—		—		—		—		—		(1,515)
Non-GAAP amount	$ 26,074		$ 10,238		$ 36,312		$ 17,935		$ 18,377		$ 202		$ 15,150
% of revenue	66.4 %		70.4 %		67.5 %		33.3 %		34.2 %		0.4 %		28.2 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES   EFFECTIVE TAX RATE (In percentages)
	Three Months Ended				Fiscal Year Ended
	July 26, 2025		July 27, 2024		July 26, 2025		July 27, 2024
GAAP effective tax rate	15.8 %		9.8 %		8.7 %		15.6 %
Total adjustments to GAAP provision for income taxes	2.3 %		6.8 %		9.7 %		2.9 %
Non-GAAP effective tax rate	18.1 %		16.6 %		18.4 %		18.5 %

 

GAAP TO NON-GAAP GUIDANCE
Q1 FY 2026		Gross Margin		Operating Margin		Earnings per Share (1)
GAAP		65% - 66%		21.5% - 22.5%		$0.63 - $0.68
Estimated adjustments for:
Share-based compensation expense		1.0 %		6.5 %		$0.18 - $0.19
Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs		1.5 %		4.0 %		$0.11 - $0.12
Significant asset impairments and restructurings (2)		—		1.0 %		$0.02 - $0.03
Non-GAAP		67.5% - 68.5%		33% - 34%		$0.97 - $0.99

 

FY 2026		Earnings per Share (1)
GAAP		$2.79 - $2.91
Estimated adjustments for:
Share-based compensation expense		$0.69 - $0.71
Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs		$0.43 - $0.45
Significant asset impairments and restructurings (2)		$0.03 - $0.05
Non-GAAP		$4.00 - $4.06

(1) Estimated adjustments to GAAP earnings per share are shown after income tax effects.

(2) Reflects charges related to a restructuring plan announced on August 14, 2024. We expect this plan to be substantially completed by the end of the second quarter of fiscal 2026.

Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.

Forward Looking Statements, Non-GAAP Information and Additional Information

This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as the massive opportunity ahead as we lead the required architectural shift and building the critical infrastructure needed for the AI era, and our focus on making strategic investments in innovation, driving durable, profitable growth and delivering shareholder value) and the future financial performance of Cisco (including the guidance for Q1 FY 2026 and full year FY 2026) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q1 FY 2026 and full year FY 2026. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market, cloud, enterprise and other customer markets; the return on our investments in certain key priority areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and services markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco's most recent reports on Forms 10-Q and 10-K filed on May 20, 2025 and September 5, 2024, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco's results of operations for the three months and the year ended July 26, 2025 are not necessarily indicative of Cisco's operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco's management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia-Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco's management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

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FAQ

What were Cisco's Q4 2025 earnings results?

Cisco reported Q4 revenue of $14.7 billion (up 8% YoY), GAAP EPS of $0.71 (up 31%), and non-GAAP EPS of $0.99 (up 14%)

How much did Cisco's AI Infrastructure business grow in FY2025?

Cisco's AI Infrastructure orders from webscale customers reached over $2 billion in FY2025, more than double their original $1 billion target

What is Cisco's revenue guidance for fiscal 2026?

Cisco projects FY2026 revenue between $59.0 billion and $60.0 billion, with non-GAAP EPS guidance of $4.00 to $4.06

How much is Cisco's quarterly dividend for Q1 FY2026?

Cisco declared a quarterly dividend of $0.41 per share, payable on October 22, 2025

What was Cisco's geographic performance in Q4 2025?

Cisco saw growth across all regions: Americas up 9%, EMEA up 4%, and APJC up 7%

What was Cisco's operating cash flow for fiscal 2025?

Cisco generated $14.2 billion in operating cash flow for FY2025, representing a 30% increase compared to FY2024