Cisco (NASDAQ: CSCO) reported Q4 2025 earnings with $14.7 billion in revenue and earnings per share (EPS) of $0.99.
Analysts had expected $14.62 billion in revenue and an EPS of $0.98, according to a FactSet survey.
The company had issued guidance of $14.5 billion to $14.7 billion in revenue for Q4 2025 and a non-GAAP EPS of $0.96 to $0.98.
Cisco Q4 FY 2025 Highlights
Financials
Revenue: $14.7B, up 8% year over year — at the high end of guidance
Non-GAAP EPS: $0.99, up 14% year over year and above the high end of guidance
GAAP EPS: $0.71, up 31% year over year
Non-GAAP Gross Margin: 68.4%, at the high end of the forecast range
Non-GAAP Operating Margin: 34.3%
Net Income (Non-GAAP): $4.0B, up 12%
Operating Cash Flow: $4.2B, up 14% year over year
Dividend: Quarterly dividend of $0.41/share declared, payable Oct. 22, 2025
Operations
AI Infrastructure Orders: Over $800M in Q4 alone from webscale customers, bringing FY 2025 AI infrastructure total to over $2B — doubling Cisco’s original goal
Product Orders: Up 7% year over year, with growth across all geographies
Revenue by Geography:
— Americas: $8.8B, up 9%
— EMEA: $3.6B, up 4%
— APJC: $2.2B, up 7%
Revenue by Segment:
— Networking: $7.63B, up 12%
— Security: $1.95B, up 9%
— Observability: $259M, up 4%
— Collaboration: $1.04B, up 2%
— Services: $3.79B
RPO (Remaining Performance Obligations): $43.5B, up 6%, with 50% expected to be recognized in the next 12 months
Capital Allocation: $2.9B returned to shareholders in Q4 via $1.6B in dividends and $1.3B in share repurchases at an average price of $64.65
Guidance
Q1 FY 2026:
— Revenue: $14.65B–$14.85B
— Non-GAAP EPS: $0.97–$0.99
FY 2026:
— Revenue: $59.0B–$60.0B
— Non-GAAP EPS: $4.00–$4.06
Cisco (CSCO) Stock: A Stable Play
Cisco shares closed at $70.27 at the end of Wednesday’s trading session, down over 1.5% on the day but up around 19% year-to-date and over 50% over the past year — outperforming NASDAQ.
Price targets are largely clustered near the current trading range.
MarketBeat reports a consensus “Moderate Buy” rating with a price target of $70.55, and TipRanks places the average at $73.33 — implying just 2% to 3% upside from current levels.
These suggest that unless Cisco delivers significantly higher visibility or outperformance, short-term gains may be limited.
That said, some firms remain bullish. JPMorgan has maintained an Overweight rating and raised its price target to $78. Melius Research also holds a Buy rating and projects $78, arguing Cisco is a “hidden sovereign AI play.”
UBS and Morgan Stanley have modestly lifted their targets to $74 and $70 respectively. Evercore ISI maintains an “In-Line” rating with a $72 target.
While Cisco is seen as a strategic player in AI infrastructure, many analysts want more proof that those orders are turning into meaningful revenue growth before revising their ratings higher.
Cisco Earnings Call: What to Watch
Cisco will hold its Q4 2025 earnings call at 4:30 PM Eastern/1:30 PM Pacific.
Analysts are expected to focus on several key areas:
AI orders vs. actual AI revenue — Will Cisco detail not just AI-related infrastructure orders, but also explain how much has converted into recognized revenue? Evercore highlights that without AI revenue disclosure, upside may be limited.
Forward-looking AI momentum — whether Cisco can validate its stated goal of over $2 B in AI orders for FY 2026.
Macro and tariffs commentary — With rising uncertainty from tariffs and enterprise budget softness, investment in AI and infrastructure could see pushbacks.
Enterprise Spending Trends: How are large organizations allocating IT budgets amid persistent macro uncertainty?
Security and Subscription Growth: Updates on Splunk performance and overall recurring revenue trends.
This is a breaking news story and will be updated as more information becomes available.
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