Q3 2025 Cisco Systems Inc Earnings Call Transcript
Key Points
- Cisco Systems Inc (CSCO) reported strong Q3 results with revenue, margins, and earnings per share all exceeding the high end of guidance ranges.
- The company achieved significant growth in annualized recurring revenue, remaining performance obligations, and subscription revenue, supporting future performance.
- AI infrastructure orders from web-scale customers exceeded $600 million in Q3, bringing the year-to-date total to over $1 billion, surpassing the fiscal year 2025 target early.
- Cisco Systems Inc (CSCO) returned $3.1 billion to shareholders through share repurchases and dividends in Q3, totaling $9.6 billion year-to-date.
- The company saw strong demand across various segments, including a 20% year-over-year growth in total product orders, driven by web-scale infrastructure and enterprise routing.
- Despite strong performance, Cisco Systems Inc (CSCO) faces uncertainties related to tariffs, which could impact future financial results.
- The company noted that the macroeconomic environment remains uncertain, which could affect customer purchasing behavior.
- There is a potential risk of slowing cloud CapEx, which could impact Cisco Systems Inc (CSCO)'s growth in the cloud segment.
- The transition to AI infrastructure is nonlinear, and execution challenges could affect Cisco Systems Inc (CSCO)'s ability to capitalize on this opportunity.
- Cisco Systems Inc (CSCO) faces competitive pressures in the AI and networking markets, which could impact market share and profitability.
Welcome to Cisco's third quarter fiscal year 2025 financial results conference call. At the request of Cisco, today's conference is being recorded. If you have any objections, you may disconnect. Now I would like to introduce Sami Badri, Head of Investor Relations. Sir, you may begin.
Good afternoon, everyone. This is Sami Badri, Cisco's Head of Investor Relations, joined by Chuck Robbins, our Chair and CEO; Scott Herren, our CFO; and Mark Patterson, our Chief Strategy Officer. Cisco's earnings press release and supplemental information, including GAAP to non-GAAP reconciliations are available on our Investor Relations website. Following this call, we will also make the recorded webcast and slides available on the website. Throughout today's call, we'll be referencing both GAAP and non-GAAP financial results.
We will discuss product results in terms of revenue and geographic customer results in terms of product orders unless stated otherwise. All comparisons will be made on a year-over
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
