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 Q3 2025
Cisco (CSCO) announced its third-quarter results for the period ending April 26, 2025. The company reported $14.1 billion in revenue, which was slightly below estimates. However, $0.96 earnings per share (EPS) exceeded expectations.
Cisco’s GAAP net income was $2.5 billion, or $0.62 per share. Its non-GAAP net income was $3.8 billion, or $0.96 per share.
Highlights:
- Revenue: $14.1 billion in Q3, up 11%; product sales grew 15%, services grew 3%.
- Growth by Region: Americas +14%, EMEA +8%, APJC +9%.
- Strong Product Growth: Security +54%, Observability +24%, Networking +8%, Collaboration +4%.
- Operating Income: GAAP $3.2 billion (+46%), non-GAAP $4.9 billion (+12%).
- Net Income & EPS: GAAP $2.5 billion (+32%), EPS $0.62 (+35%); non-GAAP $3.8 billion (+8%), EPS $0.96 (+9%).
- Cash Flow: $4.1 billion, up 2%.
- Cash & Investments: $15.6 billion available.
- Stockholder Returns: $3.1 billion returned via dividends and share buybacks.
- Acquisitions: Cisco acquired SnapAttack to boost cybersecurity.
- Dividend: Cisco will pay $0.41 per share on July 23, 2025.
Outlook
Cisco expects Q4 FY25 revenue between $14.5 billion and $14.7 billion, with full-year revenue reaching $56.5 billion–$56.7 billion.
Non-GAAP earnings per share (EPS) are projected at $0.96–$0.98 for Q4 and $3.77–$3.79 for FY25.
While GAAP EPS is expected to be $0.62–$0.67 for Q4 and $2.53–$2.58 for the year.
The forecast accounts for tariff impacts, with estimated tax rates of ~17% for GAAP and ~18% for non-GAAP in Q4.
Boards Statements
Chuck Robbins, Chair and CEO of Cisco, highlighted the company’s strong quarterly performance, emphasizing the continued high demand for its technologies. He noted that the momentum in artificial intelligence is being driven by Cisco’s secure networking solutions, global partnerships, and the value it delivers to customers.
Scott Herren, Cisco’s CFO, stated that solid execution in the third quarter resulted in revenue, margins, and earnings per share exceeding guidance expectations. He stressed that Cisco’s innovation supports future growth, while strong operational discipline continues to generate robust cash flows and significant returns for shareholders.
Impact on the Stock Market
Cisco’s earnings report had a positive effect on its stock, with CSCO shares rising 2.7% in pre-market trading. The company beat earnings estimates, reporting $0.96 per share instead of the expected $0.92, though revenue of $14.1 billion was slightly below forecasts.
Also, strong AI-related orders, which passed $600 million, exceeding the company’s yearly target early. Product orders also grew 20% year-over-year, showing solid demand across all business areas.
