Cisco Systems (CSCO) announced its financial results for the fourth quarter and full fiscal year 2025 on Wednesday, August 13, revealing earnings that narrowly surpassed Wall Street expectations. The technology giant’s performance was significantly bolstered by surging demand for its artificial intelligence infrastructure, though its stock saw a decline in after-hours trading as its forward-looking guidance met, but did not exceed, analyst predictions.
For the fourth quarter, which concluded on July 26, 2025, Cisco reported an adjusted earnings per share (EPS) of 99 cents, just ahead of the 98 cents anticipated by analysts surveyed by LSEG. Revenue for the quarter reached $14.67 billion, slightly above the consensus estimate of $14.62 billion. This represented a 7.6% increase in revenue compared to the same period last year. The company’s net income also saw a healthy rise, climbing to $2.82 billion, or 71 cents per share, from $2.16 billion, or 54 cents per share, in the prior-year quarter, according to a report from CNBC.
A major driver of this growth was the booming AI sector. Cisco CEO Chuck Robbins highlighted on an analyst call that the company secured $800 million in AI infrastructure orders from major web companies during the quarter. This brought the total for the 2025 fiscal year to over $2 billion, more than doubling the company’s internal target. Robbins also noted that Cisco’s sales pipeline for AI infrastructure from enterprise clients is now in the “hundreds of billions of dollars.” This momentum is supported by recent strategic moves, including the introduction of new switches and routers designed for AI workloads and a collaboration with Microsoft, BlackRock, and others to invest in AI infrastructure.
A closer look at Cisco’s revenue segments reveals a mixed but largely positive picture. The core Networking division performed strongly, generating $7.63 billion in revenue, a 12% year-over-year increase that comfortably beat the StreetAccount estimate of $7.34 billion. However, the Security division’s revenue, while up 9% to $1.95 billion, fell short of the $2.11 billion that analysts had projected.
Despite the solid quarterly performance, investor reaction was tepid. Cisco’s stock, which had gained approximately 19% year-to-date, slipped by about 1.9% in extended trading. The dip appeared to be linked to the company’s guidance for the upcoming fiscal year. For the first quarter of fiscal 2026, Cisco projects adjusted EPS between 97 and 99 cents on revenue of $14.65 billion to $14.85 billion. This was largely in line with the LSEG consensus of 97 cents per share on $14.62 billion in revenue.
Similarly, the full-year forecast for fiscal 2026 anticipates an adjusted EPS of $4.00 to $4.06 and revenue between $59 billion and $60 billion. These figures closely bracketed the analyst consensus of $4.03 in earnings per share and $59.53 billion in revenue. While the forecast signals stable growth, it did not provide the significant upside surprise that investors may have been hoping for after a strong year for the stock. Cisco’s Chief Financial Officer, Mark Patterson, acknowledged the market conditions, stating, “While we have some clarity on tariffs, we are still operating in a complex environment.” The results underscore Cisco’s successful pivot to capitalize on the AI boom, but also reflect the high expectations already priced into its stock.
