"New product orders grew 29%, up 11% organically when excluding Splunk, marking our fourth consecutive quarter of accelerating order growth." - Chuck Robbins
— Chuck Robbins
03Detailed Report
CSCO
Cisco Systems Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
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Executive Summary
Cisco Systems Inc (CSCO) reported robust financial results for Q2 of fiscal year 2025, with total revenues reaching $14 billion, marking a year-over-year increase of 9%. The company's earnings per share (EPS) was $0.61, despite a slight decline in net income compared to the previous quarter. Notably, subscription revenue accounted for 56% of total revenue, reflecting the growing importance of recurring revenue in Cisco's business model. CEO Chuck Robbins expressed confidence in the company's strong order growth, particularly in AI-related infrastructure, which is poised to exceed $1 billion in annual orders this fiscal year. Cisco remains focused on delivering value to shareholders, returning $2.8 billion in capital during the quarter.
Key Performance Indicators
Revenue
Increasing
13.99B
QoQ: 1.08% | YoY: 9.38%
Gross Profit
Increasing
9.11B
65.12% margin
QoQ: -0.11% | YoY: 8.57%
Operating Income
Increasing
3.11B
QoQ: 32.02% | YoY: 0.16%
Net Income
Decreasing
2.43B
QoQ: -10.44% | YoY: -7.82%
EPS
Decreasing
0.61
QoQ: -10.29% | YoY: -6.15%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Overview
- Revenue: $14 billion (up 9% YoY, up 1% QoQ)
- Net Income: $2.43 billion (down 7.8% YoY, down 10.4% QoQ)
- EPS: $0.61 (down 6.15% YoY, down 10.29% QoQ)
- Gross Margin: 68.7% (up 200 basis points YoY)
- Operating Income: $3.11 billion (up 0.16% YoY, up 32.02% QoQ)
- Operating Cash Flow: $2.24 billion (up 177% YoY)
- Free Cash Flow: $2.03 billion (75% of net income, reflecting strong cash generation)
Management attributed the favorable results to strong demand across all geographic segments and product lines, particularly in the Service Provider & Cloud market where product orders surged 75%. Additionally, AI infrastructure orders saw significant growth, reflecting the strategic pivot toward AI solutions. These financial metrics indicate improved operational efficiency and solid execution against Cisco's strategic priorities.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.99B
9.38%
1.08%
Gross Profit
9.11B
8.57%
-0.11%
Operating Income
3.11B
0.16%
32.02%
Net Income
2.43B
-7.82%
-10.44%
EPS
0.61
-6.15%
-10.29%
Key Financial Ratios
Gross Profit Margin
Excellent
65.10%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
22.30%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
17.40%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.33%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
0.87
Current ratio below safe levels, potential liquidity risk