Cisco Systems Inc (4333.HK) Q3 2025 Earnings Report

Cisco Systems delivered a solid QQ3 2025 performance with revenue of USD 14.149 billion, up 3.72% year-over-year and 1.13% quarter-over-quarter. The business posted a healthy gross margin of approximately 65.6% and an operating margin near 22.6%, driving diluted EPS of USD 0.62 on USD 2.491 billion of net income. Operating cash flow reached USD 4.058 billion and free cash flow USD 3.796 billion, underscoring enduring cash-generation strength even as the company maintains a disciplined approach to capital allocation.

Financial strength remains anchored by a robust balance sheet and strong liquidity: cash and short-term investments total USD 15.642 billion, total debt USD 30.745 billion, and net debt around USD 21.118 billion. Cisco continues to execute its strategic transition toward software, services, and security offerings, supported by a resilient business model that translates top-line growth into meaningful free cash flow. The key questions for investors center on how Cisco sustains software-and-services mix, manages leverage and capital allocation, and how the macro environment and competitive dynamics impact mid- to long-term revenue growth.