Cisco beat estimates last quarter, with double-digit percentage growth in income and a surge in artificial intelligence infrastructure orders.
Revenue was up 8% year-over-year to US$14.67 billion, besting LSEG estimates of $14.62. Earnings per share were $0.99, rising 14% and above estimates of $0.98.
“We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution,” said Cisco CEO Chuck Robbins. “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.”
“In Q4, revenue, gross margin and operating margin were at the high end of our guidance ranges, earnings per share was above the guidance range and we delivered solid operating cash flow,” said Cisco CFO Mark Patterson.
Net income grew by 12% to US$4.0 billion. Operating income was $5 billion, rising 13%.
Cisco’s product revenue was up 10% last quarter to US$10.89 billion, with product orders increasing by 7%. Services revenue was largely flat, growing from $3.78 billion to $3.79 billion.
Revenue grew across geographic regions. Americas revenue rose by 9% to US$8.82 billion, while Europe, Middle East, and Africa revenue was up 4% and Asia Pacific revenue was up 7%.
The company’s guidance for fiscal 2026 projects revenue of US$59-60 billion, with earnings per share of $4.00-4.06. Next quarter, it expects revenue of $14.65-14.85 billion and earnings per share of $0.97-0.99.
Cisco’s (NASDAQ: CSCO) share price closed at US$70.27, down from its previous close at $71.38. Its market capitalisation is $278.27 billion.
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