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Cisco Systems, Inc. (CSCO) has announced its latest quarterly earnings, revealing results that narrowly surpassed analysts’ expectations and underscored significant growth within its artificial intelligence infrastructure segment. The report, released on August 13, 2025, detailed how the company achieved an adjusted earnings per share of 99 cents, exceeding the anticipated 98 cents. Additionally, Cisco’s reported revenue reached $14.67 billion, slightly above the forecast of $14.62 billion.
According to Cisco, the company’s revenue increased 7.6% year over year for the quarter ending July 26, with net income rising to $2.82 billion, equivalent to 71 cents per share—an increase from the previous year’s $2.16 billion, or 54 cents per share. These promising results demonstrate Cisco’s resilience in a challenging market environment and reflect its strategic focus on boosting AI technology sales.
Solid Guidance Amidst Market Challenges
Looking forward, Cisco has issued a forecast for the first quarter of the fiscal year, estimating adjusted earnings between 97 cents and 99 cents per share, accompanied by revenue projections ranging from $14.65 billion to $14.85 billion. Analysts had predicted earnings of 97 cents per share on revenue of $14.62 billion, indicating that Cisco’s outlook aligns closely with market expectations, reinforcing its stability in uncertain times.
For the entirety of the 2026 fiscal year, Cisco anticipates adjusted earnings per share of $4 to $4.06, alongside revenue predictions between $59 billion and $60 billion. This outlook meets current analyst expectations, which sit at $4.03 per share and approximately $59.53 billion in revenue, allowing investors to remain cautiously optimistic about the company’s trajectory.
Rising Demand for AI Infrastructure
During the earnings call, CEO Chuck Robbins highlighted a considerable increase in AI infrastructure orders from major web companies, amounting to $800 million in the last quarter alone. Over the entire fiscal year, Cisco’s AI infrastructure sales surpassed $2 billion, exceeding management’s initial goals and showcasing the firm’s robust position in the rapidly evolving tech landscape.
Moreover, Cisco is actively engaging in deploying partnerships aimed at advancing AI infrastructure investments. Its collaboration with industry leaders such as BlackRock and Microsoft on new AI data center initiatives speaks to Cisco’s commitment to not only adapting to market demands but also leading in innovative technology solutions.
Additionally, the company has introduced new networking products designed to support AI workloads, which may further position Cisco favorably in the competitive networking equipment market. The network revenue within the fiscal fourth quarter rose significantly, reaching $7.63 billion—well above the expectations of $7.34 billion.
Security Revenue and Future Steps
While the security revenue for the quarter totaled $1.95 billion—a growth of 9%—it fell short of the StreetAccount estimate of $2.11 billion. Despite this, the overall positive performance in other segments indicates a well-rounded growth trajectory.
As Cisco faces a multifaceted and dynamic market environment, CFO Mark Patterson has emphasized the necessity of navigating complexities, particularly in relation to tariffs and geopolitical factors affecting its operations. This careful strategizing highlights Cisco’s awareness of external risks while pursuing its ambitious business objectives.
At the close of trading on the day of its earnings report, Cisco shares reflected a 19% increase throughout 2025, significantly outperforming the S&P 500’s 10% increase, showcasing investor confidence in Cisco’s future. With continued focus on AI investments and consistent revenue growth, Cisco appears well-poised to adapt to tomorrow’s technology demands.
Frequently Asked Questions
What were Cisco’s recent earnings results?
Cisco reported adjusted earnings per share of 99 cents and revenue of $14.67 billion, exceeding analyst expectations.
How did Cisco perform in terms of AI infrastructure orders?
The company reported $800 million in AI infrastructure orders for the last quarter, totaling over $2 billion for the fiscal year.
What is Cisco’s outlook for the future?
Cisco anticipates adjusted earnings per share of $4 to $4.06 for the 2026 fiscal year and anticipates revenue between $59 billion and $60 billion.
How has Cisco’s stock performed this year?
As of the earnings report date, Cisco shares have risen by 19% in 2025, outperforming the S&P 500.
What challenges does Cisco face in the market?
The company is navigating a complex market environment, particularly concerning tariffs and geopolitical factors affecting operations.