Cisco Systems, Inc. is a well-known technology company that makes networking equipment, software, and security tools. It was founded in 1984 and became famous for its routers, which help computers talk to each other. Over time, Cisco has expanded into areas like cybersecurity, cloud computing, and online collaboration tools such as Webex. The company is based in San Jose, California, and supports businesses, governments, and service providers worldwide.
Cisco is always working on new technology, including artificial intelligence, network security, and the Internet of Things (IoT). It stays ahead by buying other companies and investing in research. Also, Cisco cares about sustainability, working to reduce its environmental impact and promote digital access for people around the world.
Cisco Fiscal Q4 2025
Cisco (CSCO) delivered strong results in Q4 and throughout fiscal year 2025.
Quarterly revenue reached $14.7 billion, an 8% increase from the previous year and above expectations, while full-year revenue rose 5% to $56.7 billion.
Also, product orders grew 7% year over year across all regions, reflecting solid demand. AI infrastructure orders from webscale customers topped $800 million in Q4, pushing the annual total past $2 billion, more than double the company’s initial $1 billion target.
Profitability was also strong, with gross margins and earnings per share at the high end of guidance, including GAAP EPS of $0.71 and non-GAAP EPS of $0.99.
Meanwhile, Cisco declared a quarterly dividend of $0.41 per share, payable on October 22, 2025, to shareholders of record as of October 3, 2025.
Q4 Highlights:
- Q4 revenue was $14.7 billion, up 8% year over year.
- Product revenue rose 10%, while services revenue remained flat.
- Product growth areas: Networking up 12%, Security up 9%, Observability up 4%, Collaboration up 2%.
- GAAP gross margin was 65.7%; non-GAAP gross margin was 68.4%.
- GAAP operating expenses were $6.2 billion (flat); non-GAAP operating expenses were $5 billion (up 4%).
- GAAP operating income was $3.4 billion (up 32%); non-GAAP operating income was $5 billion (up 13%).
- GAAP tax rate was 15.8%; non-GAAP tax rate was 18.1%.
- GAAP net income was $2.8 billion (up 31%) with EPS of $0.71 (up 31%). Non-GAAP net income was $4.0 billion (up 12%) with EPS of $0.99 (up 14%).
- Operating cash flow was $4.2 billion, up 14% from the prior year.
Cisco returned $2.9 billion to shareholders in Q4 through dividends and buybacks. Paid $1.6 billion in dividends ($0.41 per share) and repurchased 19 million shares for $1.3 billion. Also, $14.2 billion remains authorized for future stock repurchases, with no expiration date.
Outlook
Cisco expects Q1 FY 2026 revenue between $14.65 billion and $14.85 billion, with non-GAAP EPS ranging from $0.97 to $0.99 and GAAP EPS between $0.63 and $0.68.
For the full fiscal year 2026, Cisco anticipates revenue between $59 billion and $60.0 billion, non-GAAP EPS of $4 to $4.06, and GAAP EPS of $2.79 to $2.91. The company assumes a tax rate of approximately 18% for GAAP and 19% for non-GAAP results.
Boards Statements
Chuck Robbins, Chair and CEO of Cisco, noted that AI infrastructure orders from webscale customers during the year more than doubled the company’s original target, signaling a significant opportunity ahead.
Robbins emphasized Cisco’s leadership in driving the necessary architectural transformation and building the foundational infrastructure for the AI era.
Chief Financial Officer Mark Patterson reported that fourth-quarter results were robust, with revenue, gross margin, and operating margin all landing at the high end of the company’s guidance ranges.
Also, earnings per share exceeded expectations, and operating cash flow remained solid. Looking ahead to fiscal 2026, Patterson stated that Cisco will continue to prioritize strategic investments in innovation, pursue sustainable and profitable growth, and focus on delivering value to shareholders.
Impact on the Stock Market
Cisco’s Q4 earnings slightly beat expectations, with stronger profit and revenue than predicted. However, the CSCO stock dipped a bit after the report, likely because the results were solid but not surprising.
The company’s outlook for the next quarter and full year was also slightly better than expected, which could help support the stock over time. Strong demand for AI infrastructure and the recent Splunk acquisition are seen as positive signs for future growth, especially in cybersecurity.
Overall, while the report didn’t cause a big jump in the stock, Cisco’s steady performance and focus on innovation suggest it could see gradual gains ahead.
