Cisco (CSCO) Q1 2025 Earnings Report

Cisco reported a fourth consecutive quarter of declining sales, although results beat analysts’ estimates. The stock was down about 1% in extended trading.

Here’s how the company performed compared to the LSEG consensus:

• Earnings per share: 91 cents adjusted versus 87 cents expected
• Revenue: $13.84 billion versus expected $13.77 billion

Cisco’s revenue fell 6% in the quarter ended Oct. 26 from $14.7 billion a year earlier, according to a statement. Net income fell to $2.71 billion, or 68 cents per share, from $3.64 billion, or 89 cents per share, in the year-earlier quarter.

Network revenue fell 23% to $6.75 billion, slightly below the $6.8 billion consensus of analysts surveyed by StreetAccount.

Security revenue doubled to $2.02 billion, beating the StreetAccount consensus of $1.93 billion. Cisco’s collaboration revenue was $1.09 billion, slightly below the consensus estimate of $1.04 billion.

Cisco CEO Chuck Robbins said in a conference call Wednesday that orders from major customers for artificial intelligence infrastructure topped $300 million in the quarter. Server manufacturers like Dell And HPE have also focused on selling hardware that can help customers implement generative AI.

“We have received additional design orders and remain confident that we will exceed our goal of $1 billion in AI orders from web-scale customers this fiscal year,” Robbins said.

U.S. government agencies have delayed dealings with Cisco rather than eliminating them entirely, Robbins said.

During the quarter, Cisco acquired security startups DeepFactor and Robust Intelligence.

Cisco raised its full-year forecast to $3.60 to $3.66 in adjusted earnings per share on revenue of $55.3 billion to $56.3 billion, up from a previous forecast of $3.52 billion $3.58 in EPS and $55 billion to $56.2 billion in revenue. The forecast would show projected revenue growth of 3.3% at the midpoint of the range.

Analysts expected adjusted earnings of $3.58 per share for the year on revenue of $55.89 billion.

As of Wednesday’s close, Cisco shares were up 17% year to date, while the S&P 500 index was up about 26% in that period.

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