Strong Fiscal Finish Driven by Artificial Intelligence Momentum
Cisco Systems Inc. capped its fiscal 2025 year on a high note, delivering stronger-than-anticipated earnings and revenue growth powered by booming demand for AI infrastructure solutions. The networking giant reported $14.7 billion in revenue for the fourth quarter, reflecting an 8% increase over the previous year and surpassing market forecasts.
Key Fiscal Highlights
- Quarterly Revenue: $14.7 billion, up 8% year-over-year
- Full-Year Revenue: $56.7 billion, a 5% increase from the prior year
- Adjusted Earnings Per Share: 99 cents, slightly ahead of analyst consensus
AI Infrastructure Orders Double Initial Targets
A surge in demand for AI infrastructure dominated the quarter’s growth narrative. According to CEO Chuck Robbins, “The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target, indicating a massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era.”
Market Response and Analyst Perspective
Despite these results, Cisco’s stock experienced a dip of about 2% in after-hours trading. This came as the company issued a full-year outlook that, while positive for the coming quarter, landed in line with broader analyst expectations for the year. Market analysts note the complex nature of Cisco’s diverse product portfolio, which can complicate predictions regarding business momentum and guidance changes.
Simon Leopold, an analyst at Raymond James, remained optimistic about the continued growth potential from AI-related product lines, citing the exceptional pace of orders from major cloud and web-scale clients.
Outlook: Massive Opportunity Ahead
Cisco’s leadership underscored the strategic shift and critical role the company plays in building the backbone for global AI adoption. With infrastructure orders far outpacing initial projections, Cisco positions itself at the forefront of the infrastructure revolution required for an AI-driven future[1].
