Cisco Systems delivered stronger-than-expected fiscal fourth-quarter results, posting revenue and earnings that narrowly topped Wall Street estimates. The tech giant also issued guidance for the current quarter and full fiscal year that came in ahead of analyst forecasts, signaling confidence in its growth outlook despite global market complexities.
Q4 Performance
For the quarter ended July 26, Cisco reported adjusted earnings of $0.99 per share, edging past the $0.98 per share consensus estimate from LSEG. Revenue reached $14.67 billion, slightly above the $14.62 billion expected, marking a 7.6% year-over-year increase.
Net income rose to $2.82 billion, or $0.71 per share, compared with $2.16 billion, or $0.54 per share, in the same period last year.
Segment Highlights
- Networking Revenue: $7.63 billion, up 12% year-over-year and above StreetAccount’s $7.34 billion estimate.
- Security Revenue: $1.95 billion, up 9% but below the $2.11 billion analysts expected.
Forward Guidance
For fiscal Q1 2026, Cisco projects adjusted earnings between $0.97 and $0.99 per share on revenue of $14.65 billion to $14.85 billion — both ranges exceeding consensus expectations.
Full-year fiscal 2026 guidance calls for adjusted earnings of $4.00 to $4.06 per share and revenue between $59 billion and $60 billion, also ahead of market forecasts.
AI and Strategic Initiatives
Cisco is actively investing in artificial intelligence infrastructure, announcing partnerships with BlackRock, Microsoft, and others, and joining the Stargate data center initiative in the Middle East alongside OpenAI and SoftBank. The company also introduced new AI-capable switches and routers during the quarter.
CEO Chuck Robbins noted that AI-related infrastructure orders from web companies totaled $800 million in Q4, contributing to over $2 billion in AI orders for fiscal 2025 — more than double the company’s original goal. Around half of those orders were tied to back-end networks supporting GPU connections.
Robbins emphasized that AI demand extends beyond hyperscale cloud companies, with enterprise AI infrastructure opportunities in the “hundreds of millions” of dollars. “I don’t feel like AI’s a fleeting trend,” he said.
Market Performance
As of Wednesday’s market close, Cisco shares are up 19% year-to-date in 2025, outperforming the S&P 500’s 10% gain.
Partner With Us
Want to feature your brand, business, or service on 365247 — Whether you’re looking to sponsor, collaborate, or build presence within our ecosystem, we’d love to explore it with you.
Submit your Interest Here
