CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2025 EARNINGS

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]