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Benzinga
Benzinga
Adam Eckert

Cisco Q4 Earnings: Revenue Beat, EPS Beat, Strong Guidance, Company Sees 'Massive' AI Infrastructure Opportunity Ahead

CiscoMunich,,Bavaria,,Germany,-,February,11,,2023:,Cisco,Systems,,Inc.

Cisco Systems Inc (NASDAQ:CSCO) reported fourth-quarter financial results for fiscal 2025 after the market close on Wednesday. Here’s a rundown of the report.

CSCO shares are down after-hours. See what the experts say here.

Earnings Highlights: Cisco reported fiscal fourth-quarter revenue of $14.67 billion, beating the consensus estimate of $14.62 billion. The networking equipment maker reported fourth-quarter adjusted earnings of 99 cents per share, beating analyst estimates of 97 cents per share, according to Benzinga Pro.

Total revenue was up 8% year-over-year as product revenue increased 10% year-over-year and services revenue came in flat. Product revenue growth was fueled by a 12% increase in Networking, Security up 9%, Observability up 4% and Collaboration up 2%.

Cisco generated $4.2 billion in cash flow from operations during the quarter, up 14% year-over-year. The company ended the quarter with $16.1 billion in cash, cash equivalents and investments.

“We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution,” said Chuck Robbins, chair and CEO of Cisco.

“The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target, indicating a massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era.”

Cisco's board declared a quarterly dividend of 41 cents per share, payable on Oct. 22 to shareholders of record as of Oct. 3. The company also said it repurchased approximately 19 million shares of its common stock during the quarter.

Looking Ahead: Cisco expects first-quarter revenue for fiscal 2026 to be between $14.65 billion and $14.85 billion versus estimates of $14.62 billion. The company sees first-quarter adjusted earnings in the range of 97 cents to 99 cents per share versus estimates of 97 cents per share.

Cisco expects fiscal 2026 revenue of $59 billion to $60 billion versus estimates of $56.62 billion. The company sees full-year adjusted earnings in the range of $4.00 to $4.06 per share versus estimates of $3.79 per share.

Cisco executives will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET.

CSCO Price Action: Cisco shares were up about 18% year-to-date heading into the print. The stock was down 2.27% in after-hours, trading at $68.83 at the time of publication on Wednesday, according to Benzinga Pro.

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Photo: MacroEcon/Shutterstock.com

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