CSCO
Cisco Systems, Inc.77.55
-0.70-0.9%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
No earnings call transcript available yet
Last Quarter (Q3 '25)
FY Q1 '26
AI orders double; $2B pipeline
Q&A doubled down on AI firepower, quantifying at least 2x hyperscale orders versus FY25 from the same customers, atop a $2B+ neo/sovereign/enterprise pipeline excluding Q1's $200M bookings. Ex-AI orders grew 9% in Q1, rebutting base-business growth doubts despite H2 comps. Security's dip reflected Splunk's cloud mix shift (on-prem to one-third)—a timing hiccup but ARR/RPO booster—with mid-teens trajectory reaffirmed. Campus refreshes ramp faster on EOS gear, AI prep, and integrated security edge over rivals. Partners embraced program simplification for AI/campus focus. Orders double for hyperscalers. Bulls eye sovereign ramps, refresh durability.
Key Stats
Market Cap
306.41BP/E (TTM)
29.94Basic EPS (TTM)
2.59Dividend Yield
0.02%Recent Filings
8-K
Stock plan boosted 57M shares
10-Q
Q1 FY2026 results
Cisco's Q1 FY2026 revenue hit $14.9B, up 8% y/y, fueled by 15% Networking growth to $7.8B while Security dipped 2%. Gross margin held at 65.5% despite mix shifts; operating income jumped 43% to $3.4B on lower $147M restructuring (vs $665M y/y). Diluted EPS rose 6% to $0.72 on 3,993M shares. Operating cash flow delivered $3.2B; free cash flow $2.9B (derived) funded $2.0B buybacks and $1.6B dividends amid $28.1B debt. Cash sits at $8.4B. Supply chain strains persist.
8-K
Cisco beats Q1 estimates sharply
Cisco crushed Q1 FY2026 estimates with $14.9B revenue, up 8% YoY, GAAP EPS $0.72 (up 6%), and non-GAAP EPS $1.00 (up 10%). Product orders surged 13%, fueled by $1.3B AI infrastructure wins and a multi-year campus networking refresh. Guidance holds steady: Q2 revenue $15.0-15.2B, FY revenue $60.2-61.0B. Tariffs baked into outlook.
8-K
Director Bush to exit Cisco board
10-K
FY2025 results
Cisco Systems delivered FY2025 revenue of $56.7B, up 5% y/y, with product revenue rising 6% to $41.6B driven by 59% growth in Security and 26% in Observability from Splunk integration, while Networking dipped 3% as shipments normalized; services grew 3% to $15.0B. Q4 revenue surged 8% y/y to $14.7B, accelerating from Q3's 4% gain with Networking up 5% q/q on AI infrastructure demand from webscale customers, Security margins expanding 2.1 pts sequentially to 78.4%, and overall gross margin at 63.2% despite a supplier dispute charge. Annual operating income fell 3% to $11.8B (20.8% margin) amid higher R&D and amortization, but Q4 operating margin improved 1.8 pts to 21.0% on efficiency gains; diluted EPS held flat at $2.55 with 3,998M shares. Liquidity remains robust at $16.1B in cash/investments, supporting $6.0B buybacks and $6.4B dividends, while total debt eased to $28.1B. Yet supply chain exposures from AI commitments risk excess inventory if demand softens.
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