CISCO SYSTEMS INC (NASDAQ:CSCO) Reports Mixed Q4 Earnings Amid Subdued Market Reaction

CISCO SYSTEMS INC (NASDAQ:CSCO) reported its fiscal fourth-quarter and full-year 2025 earnings, delivering a mixed performance relative to analyst expectations. The company’s revenue and earnings per share (EPS) came in slightly below estimates, while its near-term guidance provided cautious optimism. The market reaction has been subdued, with shares declining in after-hours trading.

Earnings and Revenue Performance

• Q4 Revenue: $14.67 billion, up 7.6% year over year but narrowly missing the consensus estimate of $14.91 billion.
• Q4 Non-GAAP EPS: $0.99, a 1.3% beat over the $0.995 estimate.
• Full-Year Revenue: The company did not disclose full-year figures in the press release, but analysts project $60.71 billion for fiscal 2026.

While the revenue miss was marginal, the slight EPS beat suggests cost discipline, though it wasn’t enough to excite investors. The muted after-hours decline of nearly 2.9% indicates disappointment, likely tied to the lack of a stronger AI-driven growth narrative compared to peers in the networking and infrastructure space.

Forward Guidance and Market Sentiment

• Q1 2026 Revenue Outlook: Cisco expects around $14.75 billion, slightly above the $14.92 billion analyst consensus.
• Full-Year 2026 Estimates: Analysts forecast revenue of $60.71 billion and EPS of $4.11, though Cisco’s own guidance was not explicitly provided in the press release.

The company highlighted $800 million in AI-related product orders, a positive signal, but its overall outlook was perceived as lukewarm. Recent news coverage suggests investors were hoping for a more aggressive AI-driven revenue boost, which may explain the tempered market reaction despite the modest guidance beat.

Key Takeaways from the Press Release

• Strong Topline Growth: Q4 revenue reached the high end of Cisco’s internal guidance, growing 8% YoY.
• AI Momentum: The $800 million in AI product orders signals early traction, though not yet transformative.
• Margin Pressures: The company noted tariff impacts on margins, which could weigh on profitability in the near term.

Market Reaction and Stock Performance

Despite a 20% year-to-date rally driven by AI and cybersecurity optimism, Cisco’s post-earnings dip reflects concerns over whether it can sustain outperformance in a competitive landscape. The stock’s recent performance has been steady but unspectacular, with a 0.06% gain over the past month, suggesting investors are waiting for clearer signs of acceleration.

For a deeper dive into Cisco’s earnings estimates and historical performance, visit the earnings estimates page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.