- Revenue rose 11% to $14.1 billion in Q3 FY2025, surpassing expectations.
- AI Infrastructure orders exceeded $1 billion target a quarter early.
- Cisco returned $3.1 billion to shareholders through dividends and buybacks.
In the third quarter of fiscal year 2025, Cisco Systems Inc. (CSCO, Financial) reported robust financial results with total revenue reaching $14.1 billion, marking an 11% increase compared to the same period in the previous year. This revenue figure exceeded Cisco's guidance range, driven largely by a strong performance in its Security segment, which saw a 54% year-over-year growth.
The company's AI Infrastructure business also made significant strides, with orders from webscale customers exceeding $600 million. This milestone allowed Cisco to surpass its $1 billion target one quarter ahead of schedule. Across other product segments, Observability revenue grew by 24%, Networking by 8%, and Collaboration by 4%.
Cisco's earnings per share on a GAAP basis increased by 35% to $0.62, while non-GAAP EPS rose 9% to $0.96. The company achieved a non-GAAP operating margin of 34.5%, demonstrating effective operational discipline. Cash flow from operations remained strong at $4.1 billion.
Geographically, Cisco experienced balanced growth with the Americas leading at 14%, followed by the APJC region at 9% and EMEA at 8%. The company returned $3.1 billion to its shareholders through dividends and share repurchases, underlining a commitment to delivering shareholder value.
Looking ahead, Cisco projects its Q4 FY2025 revenue to be between $14.5 billion and $14.7 billion. For the full fiscal year 2025, Cisco has raised its revenue forecast to a range of $56.5 billion to $56.7 billion, reflecting confidence in its strategic initiatives and market positioning.
