We have earnings. Cisco results are out. Christina Parts Neville is back with the numbers.Hi, Christina. >> Hi. So, Cisco posting a top and bottom line beat with earnings per share of 99 cents on revenues of 14.67% billion within the quarter.Networking revenue actually grew 12%. They're seeing gross margins, adjusted operating margins falling in line with estimates. The company did uh see growth across all geographies.As for their Q1 revenue guide, that midpoint coming in a little bit higher than street est ...

Core Viewpoint - Cisco's stock price fell by 4% in after-hours trading, with the company projecting an adjusted EPS of $4.00 to $4.06 for the fiscal year 2026, slightly above analysts' expectations of $4.03 [1] Financial Performance - The projected adjusted EPS for fiscal year 2026 is between $4.00 and $4.06 [1] - Analysts had anticipated an adjusted EPS of $4.03, indicating a slight positive outlook from the company's forecast [1]

Company Overview - Cisco is the largest maker of machines that run computer networks and the internet [1] Financial Outlook - Cisco gave a lukewarm forecast for the current fiscal year [1]

[News Summary](index=1&type=section&id=News%20Summary) This section provides an overview of Cisco's financial performance for Q4 and full fiscal year 2025, along with guidance for Q1 and full fiscal year 2026 [Q4 FY 2025 Results Highlights](index=1&type=section&id=Q4%20FY%202025%20Results) Cisco achieved strong Q4 FY2025 results, meeting or exceeding revenue and profitability expectations, with outstanding AI infrastructure orders Key Financial Data for Q4 FY2025 | Metric | Amount/Ratio (Q4 FY2025) | Year-over-Year Growth (YoY) | | :--- | :--- | :--- | | **Revenue** | $14.7 billion | 8% | | **Product Orders** | - | 7% | | **AI Infrastructure Orders (webscale customers)** | >$800 million (Q4) | - | | **GAAP Gross Margin** | 65.7% | - | | **Non-GAAP Gross Margin** | 68.4% | - | | **GAAP EPS** | $0.71 | 31% | | **Non-GAAP EPS** | $0.99 | 14% | - AI infrastructure orders from webscale customers exceeded **$800 million** in Q4, bringing the total for FY2025 to over **$2 billion**, more than double the original **$1 billion** target[4](index=4&type=chunk) [FY 2025 Full Year Results Highlights](index=1&type=section&id=FY%202025%20Results) For the full fiscal year 2025, Cisco delivered solid revenue growth and profitability, with particularly strong AI infrastructure order performance Key Financial Data for Full Year FY2025 | Metric | Amount (FY2025) | Year-over-Year Growth (YoY) | | :--- | :--- | :--- | | **Revenue** | $56.7 billion | 5% | | **AI Infrastructure Orders (webscale customers)** | >$2 billion | >100% (vs. $1B target) | | **GAAP EPS** | $2.61 | 3% | | **Non-GAAP EPS** | $3.81 | 2% | - Total AI infrastructure orders from webscale customers for full year FY2025 exceeded **$2 billion**, more than double the original **$1 billion** target[4](index=4&type=chunk) [Q1 FY 2026 Guidance](index=1&type=section&id=Q1%20FY%202026%20Guidance) Cisco anticipates stable revenue for Q1 FY2026, with Non-GAAP EPS projected to be between $0.97 and $0.99 Q1 FY2026 Performance Guidance | Metric | Range | | :--- | :--- | | **Revenue** | $14.65 billion - $14.85 billion | | **GAAP EPS** | $0.63 - $0.68 | | **Non-GAAP EPS** | $0.97 - $0.99 | - Gross margin and EPS guidance include the estimated impact of tariffs under current trade policies[4](index=4&type=chunk) [FY 2026 Full Year Guidance](index=1&type=section&id=FY%202026%20Guidance) Cisco projects full year FY2026 revenue growth, with Non-GAAP EPS expected to range from $4.00 to $4.06 Full Year FY2026 Performance Guidance | Metric | Range | | :--- | :--- | | **Revenue** | $59.0 billion - $60.0 billion | | **GAAP EPS** | $2.79 - $2.91 | | **Non-GAAP EPS** | $4.00 - $4.06 | - Gross margin and EPS guidance include the estimated impact of tariffs under current trade policies[4](index=4&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) This section presents statements from Cisco's CEO and CFO regarding the company's recent performance and future outlook [CEO Statement](index=2&type=section&id=CEO%20Statement) CEO Chuck Robbins highlights strong FY2025 performance driven by innovation and execution, noting exceptional AI infrastructure orders and market opportunities - Cisco concluded FY2025 with a strong performance, driven by accelerated innovation and solid execution[6](index=6&type=chunk) - AI infrastructure orders from webscale customers in FY2025 were more than double the original target, indicating significant opportunities in the AI era where Cisco will lead architectural transformation and build critical infrastructure[6](index=6&type=chunk) [CFO Statement](index=2&type=section&id=CFO%20Statement) CFO Mark Patterson notes Q4 revenue, gross margin, and operating income at the high end of guidance, with EPS exceeding expectations and robust operating cash flow - Q4 revenue, gross margin, and operating income were at the high end of guidance, with EPS exceeding expectations and robust operating cash flow[6](index=6&type=chunk) - Entering FY2026, the company remains focused on strategic investments in innovation, driving sustainable profitable growth, and creating shareholder value[6](index=6&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) This section provides an in-depth analysis of Cisco's financial performance for Q4 and full fiscal year 2025, including balance sheet and capital allocation details [Q4 FY 2025 Financial Performance](index=2&type=section&id=Q4%20FY%202025%20Financial%20Performance) Cisco achieved significant revenue and earnings growth in Q4 FY2025, driven by strong product revenue across all geographic regions and product categories, alongside increased operating cash flow Q4 FY2025 GAAP and Non-GAAP Performance | Metric | Q4 FY2025 (GAAP) | Q4 FY2024 (GAAP) | Year-over-Year Growth (GAAP) | Q4 FY2025 (Non-GAAP) | Q4 FY2024 (Non-GAAP) | Year-over-Year Growth (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $14.7 billion | $13.6 billion | 8% | - | - | - | | **Net Income** | $2.8 billion | $2.2 billion | 31% | $4.0 billion | $3.5 billion | 12% | | **Diluted EPS** | $0.71 | $0.54 | 31% | $0.99 | $0.87 | 14% | - Product revenue increased by **10%**, while service revenue remained flat; Americas revenue grew **9%**, EMEA **4%**, and APJC **7%**[16](index=16&type=chunk) - Product revenue growth was primarily driven by **12%** growth in Networking, **9%** in Security, **4%** in Observability, and **2%** in Collaboration products[16](index=16&type=chunk) Q4 FY2025 Gross Margins | Metric | Q4 FY2025 (GAAP) | Q4 FY2024 (GAAP) | Q4 FY2025 (Non-GAAP) | Q4 FY2024 (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | | **Total Gross Margin** | 65.7% | 64.4% | 68.4% | 67.9% | | **Product Gross Margin** | 64.7% | 63.0% | 67.5% | 67.0% | | **Service Gross Margin** | 68.3% | 67.8% | 70.8% | 70.3% | - Operating expenses were flat on a GAAP basis and increased by **4%** on a Non-GAAP basis; GAAP operating income grew **32%**, and Non-GAAP operating income grew **13%**[18](index=18&type=chunk) - Operating cash flow for Q4 FY2025 was **$4.2 billion**, a **14%** year-over-year increase[20](index=20&type=chunk) [FY 2025 Full Year Financial Performance](index=2&type=section&id=FY%2025%20Financial%20Performance) For full year FY2025, Cisco's total revenue grew by 5%, with GAAP net income and EPS increasing, while Non-GAAP net income remained flat and EPS saw a slight rise, alongside a significant increase in operating cash flow Full Year FY2025 GAAP and Non-GAAP Performance | Metric | FY2025 (GAAP) | FY2024 (GAAP) | Year-over-Year Growth (GAAP) | FY2025 (Non-GAAP) | FY2024 (Non-GAAP) | Year-over-Year Growth (Non-GAAP) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $56.7 billion | $53.8 billion | 5% | - | - | - | | **Net Income** | $10.5 billion | $10.3 billion | 1% | $15.2 billion | $15.2 billion | —% | | **Diluted EPS** | $2.61 | $2.54 | 3% | $3.81 | $3.73 | 2% | - Operating cash flow for full year FY2025 was **$14.2 billion**, a **30%** year-over-year increase[22](index=22&type=chunk) [Balance Sheet and Capital Allocation](index=3&type=section&id=Balance%20Sheet%20and%20Capital%20Allocation) As of Q4 FY2025, Cisco's cash and investments slightly increased, with growth in remaining performance obligations and deferred revenue, while consistently returning capital to shareholders through dividends and stock repurchases Cash, Cash Equivalents, and Investments | Period | Amount | | :--- | :--- | | **End of Q4 FY2025** | $16.1 billion | | **End of Q3 FY2025** | $15.6 billion | | **End of FY2024** | $17.9 billion | - Remaining Performance Obligations (RPO) reached **$43.5 billion**, a **6%** year-over-year increase, with **50%** expected to be recognized as revenue within the next 12 months; Product RPO grew **8%**, and Service RPO grew **5%**[23](index=23&type=chunk)[46](index=46&type=chunk) - Total deferred revenue was **$28.8 billion**, a **1%** year-over-year increase, with deferred product revenue up **2%** and deferred service revenue flat[24](index=24&type=chunk)[48](index=48&type=chunk) - In Q4 FY2025, the company returned **$2.9 billion** to shareholders through stock repurchases and dividends, including **$1.6 billion** in cash dividends of **$0.41** per share and **$1.3 billion** for repurchasing approximately **19 million** shares of common stock[25](index=25&type=chunk)[50](index=50&type=chunk) [Financial Guidance](index=4&type=section&id=Financial%20Guidance) This section outlines Cisco's financial projections for Q1 and full fiscal year 2026, including expected revenue, profitability, and EPS ranges [Q1 FY 2026 Outlook](index=4&type=section&id=Q1%20FY%202026%20Outlook) Cisco provides detailed financial guidance for Q1 FY2026, including expected ranges for revenue, gross margin, operating margin, and EPS, noting the inclusion of tariff impacts Q1 FY2026 Performance Guidance | Metric | Range | | :--- | :--- | | **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 | | **GAAP EPS** | $0.63 - $0.68 | - Gross margin and EPS guidance include the estimated impact of tariffs under current trade policies[27](index=27&type=chunk) - Q1 FY2026 and FY2026 guidance assume a GAAP effective tax rate of approximately **18%** and a Non-GAAP effective tax rate of approximately **19%**[30](index=30&type=chunk) [Full Year FY 2026 Outlook](index=4&type=section&id=Full%20Year%20FY%202026%20Outlook) Cisco issues full year FY2026 revenue and EPS guidance, projecting revenue between $59.0 billion and $60.0 billion, with Non-GAAP EPS from $4.00 to $4.06 Full Year FY2026 Performance Guidance | Metric | Range | | :--- | :--- | | **Revenue** | $59.0 billion - $60.0 billion | | **Non-GAAP EPS** | $4.00 - $4.06 | | **GAAP EPS** | $2.79 - $2.91 | - Gross margin and EPS guidance include the estimated impact of tariffs under current trade policies[29](index=29&type=chunk) - Q1 FY2026 and FY2026 guidance assume a GAAP effective tax rate of approximately **18%** and a Non-GAAP effective tax rate of approximately **19%**[30](index=30&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section provides comprehensive consolidated financial statements, including statements of operations, balance sheets, cash flows, and details on revenue, RPO, and deferred revenue [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations detail Cisco's key financial data for Q4 and full fiscal year 2025, including revenue, costs, gross profit, operating expenses, operating income, and net income Consolidated Statements of Operations Summary (Millions of USD) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :--- | :--- | :--- | :--- | :--- | | **Product Revenue** | $10,886 | $9,858 | $41,608 | $39,253 | | **Service Revenue** | $3,787 | $3,784 | $15,046 | $14,550 | | **Total Revenue** | $14,673 | $13,642 | $56,654 | $53,803 | | **Gross Profit** | $9,635 | $8,781 | $37,145 | $34,828 | | **Operating Expenses** | $6,193 | $6,163 | $25,030 | $22,647 | | **Operating Income** | $3,442 | $2,618 | $12,115 | $12,181 | | **Net Income** | $2,823 | $2,162 | $10,453 | $10,320 | | **Diluted EPS** | $0.71 | $0.54 | $2.61 | $2.54 | [Revenue by Geographic Segment and Product Group](index=6&type=section&id=Revenue%20by%20Segment%20and%20Product%20Group) Cisco's revenue is detailed by geographic region (Americas, EMEA, APJC) and product category (Networking, Security, Collaboration, Observability), illustrating growth across segments and product lines Revenue by Geographic Segment (Millions of USD) | Region | Q4 FY2025 Amount | Q4 FY2025 Year-over-Year Growth | FY2025 Amount | FY2025 Year-over-Year Growth | | :--- | :--- | :--- | :--- | :--- | | **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% | Revenue by Product Group (Millions of USD) | Product Group | Q4 FY2025 Amount | Q4 FY2025 Year-over-Year Growth | FY2025 Amount | FY2025 Year-over-Year Growth | | :--- | :--- | :--- | :--- | :--- | | **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% | Gross Margin Percentage by Geographic Segment | Region | Q4 FY2025 | FY2025 | | :--- | :--- | :--- | | **Americas** | 68.0% | 68.2% | | **EMEA** | 71.7% | 71.1% | | **APJC** | 64.2% | 66.4% | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of Cisco's assets, liabilities, and stockholders' equity at the end of fiscal years 2025 and 2024, reflecting changes in the company's financial position Condensed Consolidated Balance Sheets Summary (Millions of USD) | Metric | July 26, 2025 | July 27, 2024 | | :--- | :--- | :--- | | **Total Assets** | $122,564 | $124,413 | | **Cash and Cash Equivalents** | $8,346 | $7,508 | | **Investments** | $7,764 | $10,346 | | **Total Liabilities** | $75,448 | $78,956 | | **Short-Term Debt** | $5,232 | $11,341 | | **Long-Term Debt** | $22,861 | $19,621 | | **Deferred Revenue (Total)** | $28,779 | $28,475 | | **Total Equity** | $47,116 | $45,457 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows illustrate Cisco's cash generation and usage from operating, investing, and financing activities for Q4 and full fiscal year 2025 Consolidated Statements of Cash Flows Summary (Millions of USD) | Activity Type | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $4,234 | $3,730 | $14,193 | $10,880 | | **Net Cash Provided by/(Used in) Investing Activities** | $(273) | $(828) | $1,733 | $(20,478) | | **Net Cash Used in Financing Activities** | $(3,949) | $(4,507) | $(15,815) | $6,844 | | **Cash and Cash Equivalents at End of Period** | $8,910 | $8,842 | $8,910 | $8,842 | [Remaining Performance Obligations and Deferred Revenue](index=9&type=section&id=Remaining%20Performance%20Obligations%20and%20Deferred%20Revenue) Cisco's remaining performance obligations (RPO) and deferred revenue both show growth, indicating future revenue visibility and sustained customer contracts Remaining Performance Obligations (RPO) (Millions of USD) | Metric | July 26, 2025 Amount | Year-over-Year Growth (Y/Y%) | | :--- | :--- | :--- | | **Product RPO** | $21,572 | 8% | | **Service RPO** | $21,961 | 5% | | **Total RPO** | $43,533 | 6% | | **Expected to be Recognized as Revenue within Next 12 Months** | 50% | - | Deferred Revenue (Millions of USD) | Metric | July 26, 2025 | April 26, 2025 | July 27, 2024 | | :--- | :--- | :--- | :--- | | **Product Deferred Revenue** | $13,490 | $13,170 | $13,219 | | **Service Deferred Revenue** | $15,289 | $14,821 | $15,256 | | **Total Deferred Revenue** | $28,779 | $27,991 | $28,475 | [Dividends Paid and Repurchases of Common Stock](index=9&type=section&id=Dividends%20Paid%20and%20Repurchases%20of%20Common%20Stock) Cisco consistently returns capital to shareholders through dividend payments and common stock repurchase programs, demonstrating its commitment to shareholder value FY2025 Dividends Paid and Stock Repurchases (Millions of USD, except per share amounts) | Quarter Ended | Dividend Per Share | Dividend Amount | Shares Repurchased (Millions) | Weighted Average Repurchase Price Per Share | Repurchase Amount | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **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 | - Remaining authorized stock repurchase amount is **$14.2 billion**, with no termination date[25](index=25&type=chunk) [Reconciliations of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliations%20of%20GAAP%20to%20non-GAAP%20Measures) This section provides detailed reconciliations between GAAP and Non-GAAP financial measures, including net income, EPS, gross margins, operating expenses, operating margins, net income, effective tax rates, and guidance [GAAP to Non-GAAP Net Income Reconciliation](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Net%20Income%20Reconciliation) This section reconciles GAAP net income to Non-GAAP net income, detailing adjustments for stock-based compensation, acquisition-related intangible asset amortization, and acquisition/divestiture costs, to clarify core business performance GAAP to Non-GAAP Net Income Reconciliation (Millions of USD) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :--- | :--- | :--- | :--- | :--- | | **GAAP Net Income** | $2,823 | $2,162 | $10,453 | $10,320 | | **Total Cost Adjustments** | $396 | $485 | $1,793 | $1,484 | | **Total Operating Expense Adjustments** | $1,191 | $1,337 | $5,583 | $4,712 | | **Total Interest and Other Income (Loss) Net Adjustments** | $(115) | $17 | $(187) | $149 | | **Income Tax Impact** | $(344) | $(470) | $(2,429) | $(1,515) | | **Non-GAAP Net Income** | $3,951 | $3,531 | $15,213 | $15,150 | - FY2025 includes a **$720 million** benefit from the August 2024 U.S. Tax Court ruling regarding U.S. taxation of deemed foreign dividends in a transition year under the Tax Cuts and Jobs Act[52](index=52&type=chunk) [GAAP to Non-GAAP EPS Reconciliation](index=11&type=section&id=GAAP%20to%20Non-GAAP%20EPS%20Reconciliation) This section reconciles GAAP EPS to Non-GAAP EPS, outlining the impact of adjustments such as stock-based compensation, intangible asset amortization, and tax effects on per-share earnings GAAP to Non-GAAP EPS Reconciliation | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :--- | :--- | :--- | :--- | :--- | | **GAAP EPS** | $0.71 | $0.54 | $2.61 | $2.54 | | **Stock-Based Compensation Expense** | $0.24 | $0.20 | $0.90 | $0.75 | | **Acquisition-Related Intangible Asset Amortization** | $0.12 | $0.15 | $0.55 | $0.40 | | **Income Tax Impact** | $(0.09) | $(0.08) | $(0.40) | $(0.33) | | **Non-GAAP EPS** | $0.99 | $0.87 | $3.81 | $3.73 | [Gross Margins, Operating Expenses, Operating Margins, and Net Income Reconciliation](index=12&type=section&id=Gross%20Margins,%20Operating%20Expenses,%20Operating%20Margins,%20and%20Net%20Income%20Reconciliation) This section details the reconciliation of GAAP to Non-GAAP gross margins, operating expenses, operating margins, and net income, presenting the quarterly and full-year impact of adjustments on these key financial metrics Q4 FY2025 GAAP to Non-GAAP Gross Margins, Operating Expenses, Operating Margins, and Net Income Reconciliation (Millions of USD) | Metric | GAAP Amount | GAAP % of Revenue | Adjustments | Non-GAAP Amount | Non-GAAP % of Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Gross Profit** | $9,635 | 65.7% | $396 | $10,031 | 68.4% | | **Operating Expenses** | $6,193 | 42.2% | $(1,191) | $5,002 | 34.1% | | **Operating Income** | $3,442 | 23.5% | $1,587 | $5,029 | 34.3% | | **Net Income** | $2,823 | 19.2% | $1,128 | $3,951 | 26.9% | FY2025 GAAP to Non-GAAP Gross Margins, Operating Expenses, Operating Margins, and Net Income Reconciliation (Millions of USD) | Metric | GAAP Amount | GAAP % of Revenue | Adjustments | Non-GAAP Amount | Non-GAAP % of Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Gross Profit** | $37,145 | 65.6% | $1,793 | $38,938 | 68.7% | | **Operating Expenses** | $25,030 | 44.2% | $(5,583) | $19,447 | 34.3% | | **Operating Income** | $12,115 | 21.4% | $7,376 | $19,491 | 34.4% | | **Net Income** | $10,453 | 18.5% | $4,760 | $15,213 | 26.9% | [Effective Tax Rate Reconciliation](index=14&type=section&id=Effective%20Tax%20Rate%20Reconciliation) This section provides a reconciliation between GAAP and Non-GAAP effective tax rates, illustrating the impact of various adjustments on the company's tax rate Effective Tax Rate Reconciliation (Percentage) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :--- | :--- | :--- | :--- | :--- | | **GAAP Effective Tax Rate** | 15.8% | 9.8% | 8.7% | 15.6% | | **Total GAAP Income Tax Provision Adjustments** | 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 Reconciliation](index=14&type=section&id=GAAP%20to%20Non-GAAP%20Guidance%20Reconciliation) This section reconciles GAAP to Non-GAAP guidance for Q1 and full fiscal year 2026, detailing estimated adjustments impacting gross margin, operating margin, and EPS Q1 FY2026 GAAP to Non-GAAP Guidance Reconciliation | Metric | GAAP | Estimated Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **Gross Margin** | 65% - 66% | Stock-based compensation expense: 1.0%; Intangible asset amortization and acquisition/divestiture costs: 1.5%; Restructuring charges: — | 67.5% - 68.5% | | **Operating Margin** | 21.5% - 22.5% | Stock-based compensation expense: 6.5%; Intangible asset amortization and acquisition/divestiture costs: 4.0%; Restructuring charges: 1.0% | 33% - 34% | | **EPS** | $0.63 - $0.68 | Stock-based compensation expense: $0.18 - $0.19; Intangible asset amortization and acquisition/divestiture costs: $0.11 - $0.12; Restructuring charges: $0.02 - $0.03 | $0.97 - $0.99 | FY2026 GAAP to Non-GAAP Guidance Reconciliation | Metric | GAAP | Estimated Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | **EPS** | $2.79 - $2.91 | Stock-based compensation expense: $0.69 - $0.71; Intangible asset amortization and acquisition/divestiture costs: $0.43 - $0.45; Restructuring charges: $0.03 - $0.05 | $4.00 - $4.06 | - Estimated adjustments to EPS are net of income tax effects[68](index=68&type=chunk) - Restructuring charges reflect expenses related to the restructuring plan announced on August 14, 2024, which is expected to be substantially completed by the end of Q2 FY2026[69](index=69&type=chunk) [Additional Information](index=15&type=section&id=Additional%20Information) This section includes cautionary statements regarding forward-looking information, explanations of Non-GAAP financial measures, and an overview of Cisco's mission [Forward-Looking Statements, Non-GAAP Information, and Other Disclosures](index=15&type=section&id=Forward%20Looking%20Statements,%20Non-GAAP%20Information%20and%20Additional%20Information) This section contains warnings about forward-looking statements, highlighting inherent risks and uncertainties, and explains the rationale, limitations, and complementary use of Non-GAAP financial measures with GAAP - This press release may contain forward-looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, involving risks and uncertainties regarding future events and financial performance[71](index=71&type=chunk) - Non-GAAP measures are not in accordance with or an alternative for GAAP measures, may differ from Non-GAAP measures used by other companies, and are not based on any comprehensive set of accounting rules or principles[73](index=73&type=chunk) - Cisco believes that Non-GAAP measures, when used in conjunction with corresponding GAAP measures, provide useful information to investors and management regarding financial condition and operating results[74](index=74&type=chunk) [About Cisco](index=16&type=section&id=About%20Cisco) Cisco (NASDAQ: CSCO) is a global technology leader dedicated to transforming how organizations connect and secure through AI-driven solutions and services, empowering innovation, productivity, and digital resilience - Cisco is a global technology leader transforming how organizations connect and secure in the AI era[77](index=77&type=chunk) - Cisco empowers customers, partners, and communities to unlock innovation, increase productivity, and enhance digital resilience through its industry-leading AI-driven solutions and services[77](index=77&type=chunk)

Core Insights - Cisco reported quarterly results that narrowly exceeded analysts' expectations, with revenue increasing by 7.6% year over year and net income rising to $2.82 billion, or 71 cents per share, compared to $2.16 billion, or 54 cents per share, in the same quarter last year [1] Financial Performance - For the fiscal first quarter, Cisco management projected adjusted earnings per share between 97 cents to 99 cents on revenue of $14.65 billion to $14.85 billion, slightly above the LSEG consensus of 97 cents per share on $14.62 billion in revenue [2] - For the full fiscal year 2026, Cisco forecasts adjusted earnings per share of $4 to $4.06 and revenue between $59 billion to $60 billion, compared to the LSEG consensus of $4.03 per share and $59.53 billion in revenue [2] Segment Performance - In the fiscal fourth quarter, Cisco generated $7.63 billion in networking revenue, a 12% increase, surpassing the StreetAccount estimate of $7.34 billion [3] - Cisco's security revenue for the quarter was $1.95 billion, up 9%, but below the StreetAccount estimate of $2.11 billion [3] Strategic Initiatives - Cisco announced collaborations to invest in artificial intelligence infrastructure with partners including BlackRock and Microsoft, and joined a Stargate data center initiative involving OpenAI and SoftBank [4] - The company introduced new switches and routers designed to handle AI workloads [4] Market Performance - Cisco's AI infrastructure orders from webscale customers in fiscal 2025 exceeded the original target of $1 billion, with orders more than double that amount [5] - Cisco shares have increased by 19% in 2025, outperforming the S&P 500, which has gained about 10% [5]

Core Insights - Cisco reported strong financial results for Q4 and fiscal year 2025, with Q4 revenue of $14.7 billion, a year-over-year increase of 8%, and fiscal year revenue of $56.7 billion, up 5% from the previous year [2][10][16] - The company highlighted significant growth in AI infrastructure orders, which exceeded $800 million in Q4, bringing the total for fiscal 2025 to over $2 billion, more than double the initial target of $1 billion [3][10] - Cisco's gross margins and operating margins were at the high end of guidance, with GAAP gross margin at 65.7% and non-GAAP gross margin at 68.4% for Q4 [10][12] Financial Performance - Q4 FY 2025 GAAP results showed net income of $2.8 billion, a 31% increase year-over-year, and diluted EPS of $0.71, also up 31% [4][14] - Non-GAAP net income for Q4 was $4.0 billion, a 12% increase, with non-GAAP EPS of $0.99, a 14% increase [5][14] - For the entire fiscal year 2025, GAAP net income was $10.5 billion, a 1% increase, and GAAP EPS was $2.61, a 3% increase [6][16] Revenue Breakdown - Q4 revenue consisted of $10.9 billion from products (up 10% year-over-year) and $3.8 billion from services (flat year-over-year) [9][29] - Geographic revenue performance showed the Americas up 9%, EMEA up 4%, and APJC up 7% [11][26] - Product revenue growth was driven by Networking (up 12%), Security (up 9%), Observability (up 4%), and Collaboration (up 2%) [11][29] Cash Flow and Capital Allocation - Operating cash flow for Q4 was $4.2 billion, a 14% increase compared to the same quarter last year [15] - Cisco returned $2.9 billion to shareholders in Q4 through share buybacks and dividends, declaring a quarterly dividend of $0.41 per share [19][35] Guidance - For Q1 FY 2026, Cisco estimates revenue between $14.65 billion and $14.85 billion, with GAAP EPS guidance of $0.63 to $0.68 [20][21] - For FY 2026, the company projects revenue between $59.0 billion and $60.0 billion, with GAAP EPS guidance of $2.79 to $2.91 [22][23]

All right, let's get a power check on a couple of stocks preparing to report their earnings and one stock trading at its highest level of the year. First up, Cisco. That stock down a little bit ahead of its results after the bell tonight.Despite today's decline, shares still trading at levels not since seen since the year 2000. Remember Cisco briefly, the biggest company in the world. John Deere also on deck.Investors will be watching for how tariffs might have been impacting its overall business. And then ...

Financial Results - Cisco Systems, Inc. is set to release its fourth-quarter financial results on August 13, with analysts expecting earnings of 98 cents per share, an increase from 87 cents per share in the same period last year [1] - Projected quarterly revenue is $14.62 billion, compared to $13.64 billion a year earlier [1] Stock Performance - Cisco shares increased by 1% to close at $71.38 on Tuesday [2] Analyst Ratings - UBS analyst David Vogt maintained a Neutral rating and raised the price target from $70 to $74 [4] - Evercore ISI Group analyst Amit Daryanani downgraded the stock from Outperform to In-Line with a price target of $72 [4] - Morgan Stanley analyst Meta Marshall maintained an Overweight rating and increased the price target from $67 to $70 [4] - JP Morgan analyst Samik Chatterjee maintained an Overweight rating and raised the price target from $73 to $78 [4] - Wolfe Research analyst George Notter initiated coverage with a Peer Perform rating [4]

387972 02: Employees of Cisco Systems Inc. talk with each other April 17, 2001 on the company's sprawling San Jose, California complex. Cisco Systems Inc. plans to cut 8,500 jobs in light of forcasted low third-quarter profits. The company is the largest manufacture of technology that helps power the internet. (Photos by Dan Krauss/Newsmakers) Getty Images Cisco Systems Inc. is scheduled to report earnings after Wednesday's close. The stock hit a record high of $82/share in March 2000 and is currently tradi ...

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and algorithmic analysis [1] Group 1: Investment Strategies - Paul Franke developed a system called "Victory Formation," which focuses on identifying supply/demand imbalances through specific stock price and volume movements [1] - The "Bottom Fishing Club" articles target deep value stocks or those showing significant upward technical momentum reversals [1] - The "Volume Breakout Report" articles discuss stocks that exhibit positive trend changes supported by strong price and volume trading activity [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009, out of over 60,000 portfolios [1] - As of June 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1] Group 3: Risk Management - Franke advises investors to implement stop-loss levels of 10% or 20% on individual stock choices and to maintain a diversified portfolio of at least 50 well-positioned stocks to achieve consistent outperformance in the stock market [1]