Telecommunications equipment maker Cisco Systems (CSCO) closed out Fiscal 2025 with a revenue and earnings beat. The company’s Q4 results are driven by robust demand for its networking and security products and a surge in AI infrastructure orders. Despite the beat, CSCO stock was down over 2% in after-hours trading.
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CSCO’s Q4 revenue increased 8% year-over-year to $14.7 billion and surpassed the consensus estimate of $14.62 billion. Also, adjusted EPS of $0.99 came in above the Street’s expectations of $0.98 and climbed 14% from the year-ago quarter.
On a full-year basis, revenue came in at $56.7 billion, a 5% increase from Fiscal 2024. Further, adjusted EPS rose 2% to $3.81.
CSCO’s Q4 Performance
Cisco’s Q4 results are impressive in several aspects. Product orders jumped 7% year-over-year, with growth across all geographies. Also, the company reported over $800 million in AI infrastructure orders in Q4, bringing the full-year total to over $2 billion. This is more than double the company’s original $1 billion target.
At the same time, remaining performance obligations (RPO) came in at $43.5 billion, up 6%, reflecting demand growth. About 50% of this amount is expected to be recognized as revenue over the next 12 months.
Fiscal Q1 and 2026 Outlook
For the first quarter of Fiscal 2026, Cisco expects revenue between $14.65 billion and $14.85 billion, with an adjusted EPS between $0.97 and $0.99. Also, adjusted gross margin is expected to range from 67.5% to 68.5%.
For the full year Fiscal 2026, Cisco projects revenue in the range of $59 billion to $60 billion, with adjusted EPS expected to be between $4.00 and $4.06.
It must be noted that the company’s EPS guidance includes the impact of tariffs based on the current trade policy.
Is CSCO a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on Cisco stock based on 10 Buys and nine Holds. The average CSCO stock price target of $73.33 indicates about 4.16% upside potential from current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
