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CISCO SYSTEMS, INC. 8-K Report, Financial Results (May 14, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 14, 2025
Period End
May 14, 2025
Security
CSCO
In the record · 2016–202610-K1110-Q328-K146

CSCO filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 146 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Restructuring8-K · Aug ’20Aug ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed May 14, 2025. Cited figures are marked; the original filing is the authoritative source.

Cisco reported fiscal third quarter 2025 results (quarter ended April 26, 2025) that beat the high end of its own guidance on revenue, margins and EPS.

Revenue rose 11% year over year to $14.1 billiona, with product revenue up 15% and services up 3%. Growth was led by Security (up 54%) and Observability (up 24%), while Networking grew 8% and Collaboration 4%. GAAP EPS was $0.62 (up 35%) and non-GAAP EPS was $0.96 (up 9%).

Product orders rose 20% year over year, or 9% excluding Splunk, and AI infrastructure orders from webscale customers exceeded $600 millionb, surpassing the company's $1 billion target one quarter early. Profitability was solid. Non-GAAP gross margin was 68.6% and non-GAAP operating margin was 34.5%, both down modestly year over year on a margin basis.

GAAP operating income rose 46% to $3.2 billionc. Operating cash flow was $4.1 billion, and remaining performance obligations reached $41.7 billion, up 7%. Cisco returned $3.1 billion to shareholders in the quarter through a $0.41 dividend and about 25 million shares repurchased at an average of $59.78.

Cash and investments declined to $15.6 billiond from $17.9 billion at fiscal year-end 2024. Looking ahead, Cisco guided Q4 FY2025 revenue to $14.5 billion to $14.7 billion and non-GAAP EPS to $0.96 to $0.98, and full-year FY2025 revenue to $56.5 billion to $56.7 billion with non-GAAP EPS of $3.77 to $3.79.

All margin and EPS guidance includes the estimated impact of tariffs under current trade policy. The Splunk acquisition continues to influence year-over-year comparisons, and the company's GAAP results remain affected by large amortization and share-based compensation charges that are excluded from its non-GAAP figures.

02—Key points

Key Highlights

  1. Revenue of $14.1 billion, up 11% year over year and above the high end of guidance; product revenue up 15%, services up 3%
  2. Security revenue surged 54% and Observability grew 24%, while Networking (+8%) and Collaboration (+4%) also grew
  3. AI infrastructure orders from webscale customers exceeded $600 million, hitting the $1 billion annual target a quarter early; product orders up 20% (9% excluding Splunk)
  4. Non-GAAP EPS of $0.96 (up 9%) and GAAP EPS of $0.62 (up 35%), both above the high end of guidance; GAAP operating income up 46% to $3.2 billion
  5. Remaining performance obligations of $41.7 billion, up 7%, with 51% expected to be recognized within 12 months
  6. Raised no guidance explicitly; Q4 revenue guided to $14.5–14.7 billion and FY2025 non-GAAP EPS to $3.77–3.79, with tariff impacts included
  7. Returned $3.1 billion to shareholders in the quarter via a $0.41 quarterly dividend and buybacks of ~25 million shares; $15.4 billion remains authorized

03—Questions

Frequently Asked Questions

  1. How did Cisco perform relative to its own guidance in Q3 FY2025?

    Cisco reported revenue of $14.1 billion, above the high end of its guidance range, and GAAP and non-GAAP margins and EPS also exceeded the high end of the ranges it had provided.

  2. Why did GAAP EPS rise faster than non-GAAP EPS?

    GAAP EPS rose 35% to $0.62 while non-GAAP EPS rose 9% to $0.96. The gap largely reflects the prior-year period, which included significant restructuring charges of $542 million, and the company's non-GAAP adjustments for share-based compensation and acquisition amortization, which are excluded from non-GAAP results.

  3. What is the outlook for the rest of fiscal 2025?

    Cisco guided Q4 FY2025 revenue to $14.5–14.7 billion and non-GAAP EPS to $0.96–0.98. For full-year FY2025 it guided revenue to $56.5–56.7 billion and non-GAAP EPS to $3.77–3.79. Guidance assumes the estimated impact of current tariff policy.

  4. Is the growth in Cisco's business broad-based or concentrated?

    Growth is concentrated in Security and Observability, which grew 54% and 24% respectively, while Networking, the largest segment at $7.1 billion, grew 8%. Product orders grew 9% excluding Splunk, indicating the Splunk acquisition contributed meaningfully to the headline 20% figure.

  5. How is Cisco returning capital to shareholders, and how is its cash position changing?

    In Q3 Cisco paid a $0.41 quarterly dividend, about $1.6 billion, and repurchased roughly $1.5 billion of stock. Cash and investments declined to $15.6 billion from $17.9 billion at fiscal year-end 2024, reflecting shareholder returns and debt management, while operating cash flow in the quarter was $4.1 billion.

04—Continue

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