Cisco Systems, Inc. (CSCO) shares closed at $70.40, down 1.37% from the previous close. In after-hours trading, the stock experienced heightened volatility with a sharp drop followed by a partial recovery, settling at $70.25, a further 0.21% decrease.
Cisco Systems posted solid fiscal Q4 results, lifted by its expanding AI infrastructure business and Splunk integration. The company reported $14.7 billion in revenue and adjusted earnings of 99 cents per share, both topping analyst estimates. This performance reflects strong momentum as Cisco continues its transition from hardware to software and services.
Demand for Ethernet networking to support AI-centric data centers helped push AI-related orders to $800 million for the quarter. This resulted in Cisco’s total AI orders reaching over $2 billion for fiscal 2025, more than double its initial projection.
Cisco Systems, $CSCO, Q4-25. Results:
📊 Adj. EPS: $0.99 🟢
💰 Revenue: $14.7B 🟢
📈 Net Income: $2.8B
🔎 AI infrastructure orders from webscale customers topped $800M in Q4, signaling massive momentum heading into FY26. pic.twitter.com/0dY6ZuB2bq— EarningsTime (@Earnings_Time) August 13, 2025
With AI investment growing across cloud providers, Cisco sees continued opportunity, especially in large-scale infrastructure deployments. The company noted no signs of demand pull-forward, despite minor impacts from tariffs. It now eyes momentum from sovereign AI projects in fiscal 2026, particularly in the second half.
Cisco reported double-digit growth in networking product orders, driven by enterprise routing, webscale infrastructure, and industrial IoT. The AI infrastructure segment saw increasing traction, with cloud companies scaling operations to meet surging AI-related compute needs. This translated to a 7% increase in new product orders year over year.
Webscale and hyperscale cloud customers continued investing heavily to alleviate capacity constraints linked to AI workloads. Cisco, in response, emphasized its role as a core infrastructure provider in AI training and inference cluster deployments. The company highlighted key partnerships, including a strategic alliance with Saudi Arabia’s Humain and digital solutions support for Bahrain.
Cisco confirmed strong interest from enterprise clients upgrading networks to accommodate AI-driven applications and data processing demands. This supported robust switching and server sales, positioning the company well for further expansion in the AI ecosystem. The quarter marked the third consecutive period of increasing AI-related orders.
The successful $25 billion cash acquisition of Splunk contributed to Cisco’s Q4 results and marked a strategic move into cybersecurity and analytics. Splunk’s software offerings enhanced Cisco’s recurring revenue base and diversified its portfolio beyond traditional hardware. The move aligns with Cisco’s long-term goal to pivot towards higher-margin software-driven solutions.
Splunk’s integration allowed Cisco to deepen its footprint in observability, security, and operational intelligence. These capabilities are increasingly vital as enterprise clients modernize IT infrastructure and migrate to hybrid environments. Cisco aims to grow its software and services mix as a share of total revenue in fiscal 2026.
The company projects fiscal Q1 revenue between $14.65 billion and $14.85 billion, topping analyst expectations. Cisco also reaffirmed its full-year 2026 revenue forecast of $59.5 billion, signaling confidence in its strategic direction. Continued strength in software, services, and AI infrastructure underpins Cisco’s forward-looking growth trajectory.
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