Executive Summary
Cisco Systems delivered a solid Q3 2025, underpinned by durable demand for core networking platforms and a disciplined approach to cost management. Revenue of $14.149 billion rose 3.72% year over year and 1.13% quarter over quarter, aided by strength across switching, routing, and security products. Gross margin stood at 65.57%, contributing to operating income of $3.202 billion (operating margin 22.63%) and net income of $2.491 billion (net margin 17.60%). The company generated robust operating cash flow of $4.058 billion and free cash flow of $3.796 billion, supporting a solid balance sheet and favorable capital allocation.
Key Performance Indicators
Key Insights
Revenue: $14.149B; YoY +3.72%, QoQ +1.13% (Q3 2025). Gross Profit: $9.278B; Gross Margin 65.57% (stable QoQ/YoY). Operating Income: $3.202B; Margin 22.63% (YoY +22.31%, QoQ +2.86%). Net Income: $2.491B; Net Margin 17.60% (YoY +15.22%, QoQ +2.59%). EPS: $0.63 (diluted $0.62); YoY +16.67%, QoQ +3.28%. Free Cash Flow: $3.796B; CFO: $4.058B; Cash at End of Period: $8.918B. Balance sheet: Total Assets $119.782B; Total Liabilities $73.847B; Equity $45.935B. Cash & Equivalents $8.161B; Short-term I...
Financial Highlights
Revenue: $14.149B; YoY +3.72%, QoQ +1.13% (Q3 2025). Gross Profit: $9.278B; Gross Margin 65.57% (stable QoQ/YoY). Operating Income: $3.202B; Margin 22.63% (YoY +22.31%, QoQ +2.86%). Net Income: $2.491B; Net Margin 17.60% (YoY +15.22%, QoQ +2.59%). EPS: $0.63 (diluted $0.62); YoY +16.67%, QoQ +3.28%. Free Cash Flow: $3.796B; CFO: $4.058B; Cash at End of Period: $8.918B. Balance sheet: Total Assets $119.782B; Total Liabilities $73.847B; Equity $45.935B. Cash & Equivalents $8.161B; Short-term Investments $7.481B; Net Debt $21.118B. Current ratio 0.951; Quick ratio 0.869; CCC 85.89 days. Dividend Yield ~0.72%; Payout ~65.3%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.15B |
3.72% |
1.13% |
| Gross Profit |
9.28B |
5.66% |
1.83% |
| Operating Income |
3.20B |
22.31% |
2.86% |
| Net Income |
2.49B |
15.22% |
2.59% |
| EPS |
0.63 |
16.67% |
3.28% |
Key Financial Ratios
operatingProfitMargin
22.6%
operatingCashFlowPerShare
$1.02
freeCashFlowPerShare
$1.13
dividendPayoutRatio
65.3%
Management Commentary
No earnings transcript or management quotes were provided in the dataset. As a result, there are no verbatim quotes or theme-based management insights to quote here. If transcript data become available, we can extract quotes by themes (strategy, operations, market conditions) with contextual notes on significance.
Forward Guidance
No explicit forward guidance was included in the provided data. Absent formal targets, investors should monitor Cisco’s progress in monetizing software and security offerings, maintaining healthy free cash flow, managing a balanced capital allocation plan (dividends and buybacks), and sustaining margins amid competitive pricing pressure and macro volatility. Industry trends supporting Cisco include continued demand for secure, multi-cloud networking, software-defined WAN and data-center modernization. We assess achievability as contingent on execution in software-driven products, supply chain stability, and continued demand resilience in enterprise IT budgets.