Core Insights - Cisco Systems (CSCO) reported $14.67 billion in revenue for the quarter ended July 2025, marking a year-over-year increase of 7.6% and an EPS of $0.99 compared to $0.87 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Revenue Breakdown - Revenue from Networking products was $7.63 billion, surpassing the average estimate of $7.19 billion, with a year-over-year change of +12.2% [4] - Revenue from Observability products was $259 million, below the estimated $288.55 million, reflecting a +4.4% change year-over-year [4] - Revenue from Services was $3.79 billion, slightly below the average estimate of $3.88 billion, with a year-over-year change of +0.1% [4] - Revenue from Security products was $1.95 billion, below the estimated $2.2 billion, showing a +9.2% change year-over-year [4] - Total Product revenue was $10.89 billion, exceeding the average estimate of $10.72 billion, with a year-over-year change of +10.4% [4] - Revenue from Collaboration products was $1.04 billion, matching the average estimate, with a +2.3% change year-over-year [4] Gross Margin Insights - Non-GAAP Gross Margin for Services was $2.68 billion, slightly below the average estimate of $2.75 billion [4] - Non-GAAP Gross Margin for Products was $7.35 billion, exceeding the average estimate of $7.18 billion [4] Stock Performance - Cisco shares have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +3.1% change, with a Zacks Rank 2 (Buy) indicating potential for further outperformance [3]

Core Insights - Cisco Systems (CSCO) reported third-quarter fiscal 2025 non-GAAP earnings of 96 cents per share, exceeding the Zacks Consensus Estimate by 5.49%, and reflecting a year-over-year increase of 9.1% [1] - Revenues reached $14.15 billion, surpassing the Zacks Consensus Estimate by 0.65%, with an 11.4% year-over-year growth [1] - Cisco shares rose 4.13% in pre-market trading, with a year-to-date gain of 3.6%, outperforming the Zacks Computer & Technology sector's 2.4% decline [1] Revenue Breakdown - Networking revenues for Q3 fiscal 2025 were $7.06 billion, an 8% increase year-over-year [2] - Security revenues surged to $2.01 billion, up 54% year-over-year [2] - Collaboration revenues reached $1.03 billion, growing 4% year-over-year [2] - Observability revenues were $261 million, reflecting a 24% year-over-year growth [2] Product and Service Revenues - Total product revenues were $10.37 billion, accounting for 73.3% of total revenues, with a 15% year-over-year increase [3] - Service revenues amounted to $3.77 billion, making up 26.7% of total revenues, with a 2.6% year-over-year increase [3] - Annualized Recurring Revenues (ARR) for the quarter were $30.6 billion, up 5% year-over-year, with product ARR growth of 8% [3] Regional Performance - Americas revenues increased 14% year-over-year to $8.38 billion [4] - EMEA revenues rose 8% year-over-year to $3.73 billion [4] - APJC revenues climbed 9% year-over-year to $2.03 billion [4] - AI Infrastructure orders from webscale customers exceeded $600 million, surpassing the $1 billion annual target a quarter ahead of schedule [4] Operating Expenses and Margins - Non-GAAP gross margin was 68.6%, expanding 30 basis points year-over-year [5] - Non-GAAP product gross margin increased 200 basis points year-over-year to 49.6%, while service gross margin decreased 170 basis points to 19% [5] - Total non-GAAP operating expenses were $4.82 billion, up 11.5% year-over-year, maintaining 34% of revenues [5] - Non-GAAP operating income was $4.88 billion, up 12.2% year-over-year, with an operating margin of 34.5% [6] Balance Sheet Overview - As of April 26, 2025, cash and cash equivalents and investments totaled $15.6 billion, down from $16.9 billion as of January 25, 2025 [7] - Total debt was $29.2 billion, compared to $31.03 billion at the end of the prior quarter [7] Remaining Performance Obligations - Remaining performance obligations (RPO) at the end of Q3 fiscal 2025 were $41.7 billion, up 7%, with 51% expected to be recognized as revenues over the next 12 months [8] - Product RPO increased by 10%, while services RPO grew by 5% [8] Shareholder Returns - In Q3 fiscal 2025, Cisco returned $3.1 billion to stockholders through share buybacks and dividends, repurchasing approximately 25 million shares of common stock [9] Future Guidance - For Q4 fiscal 2025, Cisco expects non-GAAP earnings between 96 cents and 98 cents per share, with revenues projected in the range of $14.5 billion to $14.7 billion [10] - Non-GAAP gross margins are anticipated to be between 67.5% and 68.5%, and non-GAAP operating margin is expected to be between 33.5% and 34.5% [10] - For fiscal 2025, Cisco forecasts non-GAAP earnings between $3.77 and $3.79 per share, with total revenues expected to be in the range of $56.5 billion to $56.7 billion [11]

Core Insights - Cisco Systems reported revenue of $14.15 billion for the quarter ended April 2025, reflecting an 11.4% increase year-over-year and a surprise of +0.65% over the Zacks Consensus Estimate of $14.06 billion [1] - The earnings per share (EPS) was $0.96, up from $0.88 in the same quarter last year, with a surprise of +5.49% compared to the consensus estimate of $0.91 [1] Revenue Breakdown - Product revenue reached $10.37 billion, exceeding the six-analyst average estimate of $10.08 billion, marking a year-over-year increase of +15% [4] - Service revenue was reported at $3.78 billion, slightly below the $3.82 billion average estimate, with a year-over-year change of +2.6% [4] - Security product revenue was $2.01 billion, lower than the estimated $2.21 billion, but showed a significant year-over-year increase of +54.4% [4] - Observability product revenue was $261 million, compared to the average estimate of $276.09 million [4] - Networking product revenue was $7.07 billion, surpassing the estimated $6.76 billion, with a year-over-year increase of +8.4% [4] - Collaboration product revenue was $1.03 billion, exceeding the five-analyst average estimate of $1 billion, representing a year-over-year change of +4.5% [4] Gross Margin Performance - Non-GAAP gross margin for services was $2.69 billion, slightly below the estimated $2.72 billion [4] - Non-GAAP gross margin for products was $7.01 billion, exceeding the estimated $6.66 billion [4] Stock Performance - Cisco shares have returned +8% over the past month, compared to the Zacks S&P 500 composite's +9.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]