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
Revenue
Increasing
14.15B
QoQ: 1.13% | YoY: 3.72%
Gross Profit
Increasing
9.28B
65.57% margin
QoQ: 1.83% | YoY: 5.66%
Operating Income
Increasing
3.20B
QoQ: 2.86% | YoY: 22.31%
Net Income
Increasing
2.49B
QoQ: 2.59% | YoY: 15.22%
EPS
Increasing
0.63
QoQ: 3.28% | YoY: 16.67%
Revenue Trend
Margin Analysis
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
Gross Profit Margin
Excellent
65.60%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
22.60%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
17.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.08%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.42%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
0.95
Current ratio below safe levels, potential liquidity risk