1. Product orders increased 20%; growth across geographies and customer markets. 2. Q3 revenue reached $14.1 billion, 11% YoY increase, exceeding guidance. 3. GAAP EPS of $0.62 represents a 35% increase YoY, showcasing profitability. 4. Quarterly dividend declared at $0.41 per share, reinforcing shareholder returns. 5. Acquisition of SnapAttack enhances Cisco’s threat detection capabilities.
Cisco's strong revenue growth and profitability exceed expectations, boosting confidence in future performance.
The report's solid financial performance and dividend declaration can significantly enhance investor sentiment for CSCO.
Sustained growth in AI infrastructure and strong order increases indicate ongoing demand, impacting long-term stock performance positively.
(1) Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.
Cisco today reported third quarter results for the period ended April 26, 2025. Cisco reported third quarter revenue of $14.1 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.5 billion or $0.62 per share, and non-GAAP net income of $3.8 billion or $0.96 per share.
"Cisco once again had strong quarterly results with clear demand for our technologies," said Chuck Robbins, chair and CEO of Cisco. "The momentum we are seeing with AI is fueled by the power of our secure networking portfolio, our trusted global partnerships, and the value we bring to our customers."
"Another quarter of solid execution in Q3 drove revenue, margins and EPS above our guidance ranges," said Scott Herren, CFO of Cisco. "Our innovation positions us well for future growth and our operational discipline is generating strong cash flows, enabling us to deliver significant shareholder returns."
| GAAP Results | Q3 FY 2025 | Q3 FY 2024 | Vs. Q3 FY 2024 |
|---|---|---|---|
| Revenue | $14.1 billion | $12.7 billion | 11% |
| Net Income | $2.5 billion | $1.9 billion | 32% |
| Diluted Earnings per Share (EPS) | $0.62 | $0.46 | 35% |
| Non-GAAP Results | Q3 FY 2025 | Q3 FY 2024 | Vs. Q3 FY 2024 |
|---|---|---|---|
| Net Income | $3.8 billion | $3.6 billion | 8% |
| EPS | $0.96 | $0.88 | 9% |
Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”
Cisco has declared a quarterly dividend of $0.41 per common share to be paid on July 23, 2025, to all stockholders of record as of the close of business on July 3, 2025. Future dividends will be subject to Board approval.
All comparative percentages are on a year-over-year basis unless otherwise noted.
On a GAAP basis, total gross margin was 65.6%, compared with 65.1% in the third quarter of fiscal 2024.
On a non-GAAP basis, total gross margin was 68.6%, compared with 68.3% in the third quarter of fiscal 2024.
On a GAAP basis, operating expenses were $6.1 billion, flat year over year, and were 42.9% of revenue.
Non-GAAP operating expenses were $4.8 billion, up 12%, and were 34.1% of revenue.
GAAP operating income was $3.2 billion, up 46%. Non-GAAP operating income was $4.9 billion, up 12%.
The GAAP tax provision rate was 15.5%. The non-GAAP tax provision rate was 17.5%.
On a GAAP basis, net income was $2.5 billion, an increase of 32%, and EPS was $0.62, an increase of 35%.
On a non-GAAP basis, net income was $3.8 billion, an increase of 8%, and EPS was $0.96, an increase of 9%.
Cash flow from operating activities was $4.1 billion for the third quarter of fiscal 2025, an increase of 2%, compared with $4.0 billion for the third quarter of fiscal 2024.
Cash and cash equivalents and investments at the end of the third quarter of fiscal 2025 were $15.6 billion, compared with $17.9 billion at the end of fiscal 2024.
Cisco estimates the following results for the fourth quarter of fiscal 2025:
Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry-leading AI-powered solutions and services, Cisco enables its customers, partners, and communities to unlock innovation, enhance productivity, and strengthen digital resilience.
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