Cisco Systems stock holds steady as fiscal 2025 revenue reaches $56.7 billion

Cisco Systems (US17275R1023) reported fiscal 2025 revenue of $56.7 billion and non-GAAP EPS of $3.80, while annual free cash flow reached $14.2 billion. The company also ended the year with $17.0 billion in cash and investments and returned $6.1 billion to shareholders through dividends and buybacks.

Fiscal 2025 numbers

Fiscal 2025 revenue came in at $56.7 billion, compared with $53.8 billion a year earlier, showing a year-over-year increase of 5.4%. Non-GAAP gross margin was 67.7% in fiscal 2025, up from 66.7% in fiscal 2024, while non-GAAP EPS rose to $3.80 from $3.54.

Free cash flow of $14.2 billion in fiscal 2025 was paired with $17.0 billion in cash and investments at year-end. Those figures matter because Cisco’s results still lean heavily on cash generation, margin discipline, and capital returns rather than one-off revenue spikes.

Margin and cash flow

Operating profit also tracked the margin story: non-GAAP operating margin was 34.3% in fiscal 2025, versus 32.7% a year earlier. That 160-basis-point improvement is the clearest sign in the latest annual numbers that Cisco kept cost control ahead of growth.

The company said it returned $6.1 billion to shareholders in fiscal 2025, including dividends and share repurchases. Dividends contributed $6.0 billion of that total, while buybacks added $0.1 billion, underscoring a capital-return profile that remained anchored in cash generation.

Security and AI demand

Cisco’s security business delivered $4.4 billion in revenue in fiscal 2025, while its collaboration segment generated $4.0 billion. The product narrative now sits around networking refreshes, security demand, and AI-related infrastructure spending rather than a single hardware cycle.

In the company’s own reporting, Cisco also pointed to a strong order environment tied to AI infrastructure, including more than $1 billion in AI orders in the fiscal year. That number matters because it gives the market a concrete way to judge whether the networking and campus upgrade cycle can broaden beyond traditional routing and switching demand.

Orders and guidance

For fiscal 2026, Cisco guided for revenue of $59.0 billion to $60.0 billion and non-GAAP EPS of $4.00 to $4.06. The midpoint implies another step up from fiscal 2025 revenue of $56.7 billion and EPS of $3.80, even before any extra contribution from faster AI buildouts.

Management also set long-term expectations around profitability by keeping non-GAAP operating margin in the mid-30% area. That is one reason Cisco remains more of a cash-flow and return story than a pure top-line growth story.

Networking refresh

Networking remained Cisco’s largest revenue base in fiscal 2025, supported by campus, data center, and service-provider activity. The company’s scale in that core segment still gives the stock a report-driven rhythm: revenue growth, margin expansion, and cash conversion tend to outweigh any single product launch.

The latest year also showed how the mix has shifted toward software and subscriptions, which helps stabilize the financial profile. For a large-cap networking name, that mix matters as much as unit growth because recurring revenue can cushion hardware timing swings.

Shares and valuation

Cisco Systems stock is best read against the fiscal 2025 base: $56.7 billion in revenue, $3.80 in non-GAAP EPS, and $14.2 billion in free cash flow. Those figures define the current backdrop for the shares more clearly than a short-term move alone.

Because no dated live quote was available in the search results for this call, the market reference point here is the company’s own fiscal 2025 scale and fiscal 2026 guidance. That gives investors a current frame for Cisco Systems stock without relying on an unverified market print.