CISCO Systems Reports Strong Fiscal Year 2025 Results

By Philip Seaworth • Thursday, September 04 06:06 • Permanent Link

Cisco Systems, Inc. has reported its fiscal year 2025 results, showcasing a strong performance across all geographies and solid margins. Here are the key highlights from the 10-K filing:

Total revenue for fiscal year 2025 increased by 5% compared to fiscal 2024, reaching $56.65 billion. This growth was driven by a 6% increase in product revenue and a 3% increase in services revenue.
Total software revenue for fiscal 2025 was $22.3 billion, marking a substantial 21% increase, largely attributed to the contribution of Splunk.
In terms of geographic segments, revenue from the Americas, EMEA, and APJC segments all experienced significant increases.
From a product category perspective, the product revenue increased by 6% year over year, with Security, Observability, and Collaboration segments showing growth, partially offset by a decline in Networking.
The company's operating income as a percentage of revenue decreased by 1.8 percentage points primarily due to increases in amortization of purchased intangible assets and share-based compensation expense in fiscal 2025.
For the fourth quarter of fiscal 2025, total revenue increased by 8%, with product revenue increasing by 10% and services revenue remaining flat.
Cisco reported a net income of $10.18 billion for fiscal 2025, which was relatively flat compared to fiscal 2024.
The company's cash and cash equivalents and investments stood at $16.11 billion for fiscal 2025, with cash provided by operating activities totaling $14.19 billion.
Cisco repurchased $5.995 billion worth of common stock through its stock repurchase program and paid $6.437 billion in dividends during fiscal 2025.
The company's total debt decreased to $28.093 billion in fiscal 2025, down from $30.962 billion in fiscal 2024.

The report also highlighted critical accounting estimates, including the company's revenue recognition policies and inventory valuation methods, shedding light on the judgments, assumptions, and estimates that impact the reported financial results.

Today the company's shares have moved -0.42% to a price of $67.515. Check out the company's full 10-K submission here.

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