Cisco Systems, Inc. (NASDAQ: CSCO) is set to announce its Q3 2025 results soon, and investors are watching closely. The tech giant has maintained strong earnings momentum through consistent growth in networking, AI, and cybersecurity solutions. The company also holds a high Earnings Quality Ranking (EQR) for the 11th straight week, reflecting dependable earnings stability and solid operational discipline.
Recent Earnings Performance
In the previous quarter, Cisco posted earnings per share (EPS) of $0.81, slightly above analyst expectations of $0.80, marking a 1.25% surprise beat. Revenue for the quarter reached $14.7 billion, up 8% year-over-year, driven by strong product demand and AI infrastructure expansion.
Networking revenue grew 12%, while security rose 9%, powered by Splunk and SASE offerings. Non-GAAP net income stood at $4 billion, a 12% increase from last year. The company’s non-GAAP EPS climbed 14% to $0.99, matching Wall Street projections.
For fiscal year 2025, Cisco’s total revenue reached $56.7 billion, up 5% from the prior year, and annual EPS came in at $3.81, reflecting a steady 2% growth. The operating margin remained strong at 34.4%, supported by effective cost management and high-margin enterprise products.
Dividend and Shareholder Value
Cisco continues to reward its investors consistently. The company offers an annual dividend of $1.64 per share, giving a 2.25% yield. It has now increased its dividend for 14 consecutive years, showing reliability in shareholder returns. The recent quarterly dividend of $0.41 per share was paid on October 22, 2025.
In fiscal 2025, Cisco also repurchased shares worth over $12.4 billion, returning 94% of its free cash flow to shareholders. The total shareholder yield, combining dividends and buybacks, stood at 3.86%.
Analyst Expectations
Analysts maintain a positive view on Cisco’s near-term earnings outlook. The consensus EPS forecast for the upcoming quarter is $0.80, with a revenue projection near $14.9 billion. For fiscal 2026, analysts forecast EPS of $3.32, followed by $3.58 for 2027 and $3.78 for 2028—signaling a clear upward trend.
Cisco’s forward P/E ratio is 16.47, suggesting moderate valuation compared to industry peers. The average price target among analysts stands at $75.63, reflecting about a 5.5% potential upside from the current trading level.
Strategic Growth Drivers
Cisco’s growth story continues to center around AI infrastructure and network security. Orders from cloud and hyperscale clients crossed $2 billion during fiscal 2025. The company has made strong progress in AI-powered routers and data center solutions, positioning itself as a critical player in the enterprise digital transformation race.
Security remains another vital pillar for Cisco, with its Splunk integration expected to drive recurring revenue growth and cross-platform analytics. Its Remaining Performance Obligations (RPO) rose 6% year-over-year to $43.53 billion, showcasing a solid backlog of long-term contracts.
Market Snapshot
As of the latest update, Cisco stock trades at $72.64, up 1.30% for the day, with a market capitalization of $287.1 billion. The 52-week range sits between $52.11 and $74.84, indicating strong price recovery through 2025. The company’s EPS currently stands at $2.55, and its P/E ratio is 28.49.
What Investors Should Watch
Heading into Q3 2025 earnings, the focus will be on Cisco’s AI infrastructure performance, enterprise security momentum, and subscription-based recurring revenue. Any signs of margin pressure from hardware costs or weaker service growth could affect near-term sentiment.
Analysts will also look for updates on large-scale network modernization deals and Splunk-related revenue synergies. A reaffirmation of full-year guidance or raised forecasts could further boost confidence in the stock.
Bottom Line
Cisco enters Q3 2025 earnings with strong financial health, expanding AI opportunities, and consistent shareholder returns. The company’s steady execution and resilient business mix have helped it maintain top-tier earnings quality. For investors, Cisco remains a reliable long-term tech play with stable growth, solid dividends, and ongoing innovation across digital networking and cybersecurity markets.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always review company filings and consult a financial advisor before making investment decisions.