Cisco Earnings Surge 31% as AI Infrastructure Orders Exceed $2 Billion Target

Cisco has announced its fiscal fourth-quarter and full-year results for 2025, showcasing a solid financial performance marked by revenue and earnings that exceeded expectations. The company reported a fourth-quarter revenue of $14.7 billion, marking an 8% increase compared to the previous year. On a generally accepted accounting principles (GAAP) basis, the net income for the fourth quarter was $2.8 billion, or $0.71 per share, reflecting a substantial 31% increase year-over-year. Non-GAAP net income stood at $4.0 billion or $0.99 per share, surpassing the anticipated guidance.

The company attributes this strong performance to significant growth in product orders, which saw a 7% rise year over year, with demand expansion across various geographies. This growth underscores the robust demand for Cisco's evolving array of technologies. Notably, AI infrastructure orders from webscale customers crossed $800 million in the fourth quarter, accumulating to a fiscal year total of over $2 billion. This achievement far exceeded the initial target of $1 billion, highlighting Cisco's pivotal role in shaping the critical infrastructure needed for the AI era.

The fiscal year 2025 ended on a high note with a total revenue of $56.7 billion, a 5% increase from the previous year. The GAAP earnings per share for the year was $2.61, a 3% increase, while the non-GAAP earnings per share reached $3.81, a 2% enhancement over the prior fiscal year.

Looking ahead, Cisco has set its sights on fiscal 2026 with an optimistic outlook. The company projects its first-quarter revenue to range between $14.65 billion and $14.85 billion, with earnings per share on a non-GAAP basis expected to be between $0.97 and $0.99. For the full fiscal year 2026, revenue is anticipated to fall between $59 billion and $60 billion. Non-GAAP EPS guidance is set at $4.00 to $4.06, factoring in the estimated impact of tariffs based on the current trade policy.

Cisco's financial success is further exemplified by its gross margins and operating income figures. The fourth quarter observed a GAAP gross margin of 65.7% and a non-GAAP gross margin of 68.4%, both reaching the upper echelons of the guidance range. Operating income on a GAAP basis surged by 32%, attaining $3.4 billion, while non-GAAP operating income saw a 13% ascent to $5.0 billion.

Geographical revenue growth also featured prominently, with the Americas rising by 9%, EMEA by 4%, and APJC by 7% in the fourth quarter. Cisco's product revenue flourished with a 10% year-over-year increase, driven by substantial progress in the Networking segment at 12%, alongside Security at 9% and Observability at 4%.

Cisco’s cash flow from operating activities in the fourth quarter was robust, with an increase of 14% year-over-year, totaling $4.2 billion. For the fiscal year 2025, the cash flow from operations reached $14.2 billion, marking a significant 30% surge compared to fiscal 2024.

Cisco continues its tradition of returning value to shareholders, declaring a quarterly dividend of $0.41 per common share to be paid on October 22, 2025, to shareholders of record as of October 3, 2025. The company also repurchased approximately 19 million shares under its stock repurchase program, leaving $14.2 billion authorized for future repurchases.

In conclusion, Cisco's fourth-quarter and fiscal year results underscore its strategic positioning as a leader in the networking industry, particularly in advancing AI infrastructure. By capitalizing on burgeoning demand and executing strategic investments in innovation, Cisco remains focused on sustained, profitable growth while delivering substantial shareholder value. As it heads into fiscal 2026, the company is poised to maintain its momentum in pioneering the requisite technological shifts for the new digital age.

For further updates and insights, Cisco’s financial community can refer to the comprehensive data and analyses available on the Cisco Investor Relations website.