Csco Q4 Revenue Surges 8% Driven by AI Infrastructure Demand

Cisco Systems Inc. has reported its financial results for the fourth quarter and fiscal year ending July 26, 2025, showcasing notable performance metrics across its operating spectrum. For the fourth quarter, Cisco unveiled revenues of $14.7 billion, marking an 8% increase year-over-year. On a GAAP basis, the net income was logged at $2.8 billion, translating to earnings per diluted share of $0.71. Comparatively, non-GAAP figures indicate a net income of $4.0 billion or $0.99 per diluted share, underscoring robust profitability and strategic business operations.

The fiscal year 2025 witnessed Cisco achieving total revenues of $56.7 billion, a 5% increase from the preceding fiscal cycle. GAAP earnings per share (EPS) escalated by 3% year-over-year to $2.61, while the non-GAAP EPS increased by 2%, standing at $3.81. The results highlighted Cisco's successful efforts in meeting and exceeding key financial targets, driven by accelerated innovation and effective global execution strategies.

Revenue distribution across geographical regions saw the Americas leading with a 9% year-over-year increase, EMEA witnessing a 4% rise, and APJC up by 7%. Product revenue growth was particularly strong in the Networking segment with a 12% surge, reflecting an impressive rebound and demand, buoyed by AI infrastructure orders from webscale customers, which exceeded over $800 million in Q4 alone, amassing more than $2 billion for the fiscal year – surpassing initial estimates.

Cisco Chairman and CEO, Chuck Robbins, emphasized the strategic importance of AI and its pivotal role in Cisco's growth, stating, "The substantial AI infrastructure orders underscore a massive opportunity ahead as we lead in building the critical infrastructure needed for the AI era."

Profitability was further bolstered by favorable gross margins. The GAAP gross margin reached 65.7%, while on a non-GAAP basis, it hit 68.4%, both metrics sitting at the upper ends of Cisco’s guidance range. Operating income propelled forward with a GAAP increase of 32%, and a steady 13% rise on a non-GAAP scale, indicative of sustained operational efficiencies.

Looking ahead to fiscal 2026, Cisco has provided guidance with anticipated revenue projections between $59.0 billion to $60.0 billion. The EPS is expected to range between $2.79 and $2.91 on a GAAP basis, and $4.00 to $4.06 on a non-GAAP basis. The forthcoming quarters present avenues for growth through strategic investments in innovation and continual enhancements to shareholder value.

In the realm of capital allocation, Cisco declared a quarterly dividend of $0.41 per share, scheduled for October, subject to board approval. This reflects Cisco’s commitment to continuous shareholder returns while maintaining a robust balance sheet with approximately $16.1 billion in cash and equivalents.

To ensure sustainability in performance, Cisco is poised to pursue strategic investments that foster durable, profitable growth trajectories, especially in areas with strong market potential, such as artificial intelligence and networking services.

As Cisco navigates the evolving landscape, it remains focused on reinforcing its portfolio through innovations and an adaptable operational framework that addresses varied market demands. Analysts continue to keep a close watch on Cisco’s strategic maneuvers in the AI domain, observing its execution and delivery on projected guidance as pivotal elements in shaping its financial narrative and market positioning in fiscal 2026 and beyond.