Cisco Systems exceeded expectations in its fiscal 2025 fourth quarter results, reporting $14.67 billion in revenue, an 8% increase year over year, and non-GAAP EPS of 99 cents. The company’s strong growth in networking products drove these results. Cisco’s stock, part of the Dow Jones Industrial Average, closed slightly below its 52-week high of $71.79. Orders from webscale customers and enterprise networking refresh cycles contributed to significant order growth, positioning Cisco as an AI play with potential for growth. The company has secured over $1 billion in AI infrastructure orders and increased its presence in the security market through the acquisition of Splunk. Cisco’s transition to subscription software sales is expected to enhance margins and valuation. The company’s AI infrastructure business has seen rapid growth, with orders exceeding $800 million in the fourth quarter. A key partnership with Nvidia has allowed Cisco to integrate AI networking solutions, driving momentum in this segment. Cisco’s enterprise customers are also adopting Catalyst 9000 switches, contributing to a strong revenue performance in networking. While the security segment reported a revenue miss due to U.S. federal government budget cuts, Cisco remains optimistic about its long-term growth prospects. The company plans to return cash to shareholders through stock buybacks, with $14.2 billion remaining under its authorization. Cisco’s guidance for fiscal 2026 indicates continued growth, with revenue expected to range from $59 billion to $60 billion and non-GAAP EPS of $4 to $4.06. The company’s outlook remains positive, fueled by ongoing demand for its networking products and AI solutions.

Read more at CNBC: Cisco Systems deserves more respect in AI, and its quarterly results prove it