Cisco
In sum — what to know:
AI infrastructure orders exceed purpose: Cisco had set itself the purpose of $1 billion in AI infrastructure order in fiscal 2025 and ended up with greater than $2 billion.
Large orders within the bag: Cisco landed two orders from webscalers for fiscal 2026 that, all instructed, complete $1 billion every.
Report 12 months forward: Cisco expects file efficiency within the coming 12 months, with fiscal 2026 revenues anticipated to be between $59-$60 billion for the 12 months.
Cisco delivered outcomes on the excessive finish of its steerage for its fiscal fourth quarter of 2025, with revenues up 8% year-over-year to $14.7 billion.
Orders for Cisco’s This fall had been up 7% from the year-ago interval, and the corporate mentioned that it took in additional than $800 million in AI infrastructure orders from hyperscaler prospects — that means that AI infra orders totaled greater than $2 billion for the 12 months, greater than double the corporate’s goal of $1 billion.
Full-year revenues had been up 5% from fiscal 2024 to $56.7 billion. Cisco expects its fiscal 2026 revenues to be between $59-$60 billion.
CEO Chuck Robbins mentioned that fiscal 2025 “established a stable basis as we flip our focus to delivering Cisco’s strongest 12 months but in fiscal 12 months ’26.”
Through the quarterly name with buyers, Robbins mentioned that as AI brokers start autonomously performing duties, “the capability necessities of the community might be compounded to accommodate each unprecedented ranges of community visitors and an rising risk panorama,” with main community upgrades anticipated.
Robbins identified the $2 billion in AI infrastructure orders from hyperscalers as proof of Cisco’s “plain functionality and relevance of our know-how for a number of back-end use circumstances with a few of the most technologically superior prospects.”
Robbins mentioned that whereas public sector orders had been down 6% year-over-year after an unusually sturdy fourth quarter final 12 months, orders from service suppliers and cloud prospects had been up 49% in comparison with the identical time in 2024. Demand from telco and cable prospects noticed orders up greater than 20% year-over-year. However webscale orders had been an enormous driver within the quarter, seeing their fourth consecutive quarter of triple-digit progress.
4 out of Cisco’s prime six webscale prospects had order progress within the triple digits, Robbins mentioned, including that Cisco acquired two orders from webscale prospects that totaled greater than $1 billion for networking, safety, collaboration and observability within the coming 12 months.
Amid shifting geopolitical footing for the tech sector, Robbins mentioned Cisco will profit from international locations and corporations which might be committing to home investments within the U.S. as a part of commerce agreements, and mentioned Cisco is seeing “stable demand indicators”.
“As extra strategic infrastructure and manufacturing is introduced onshore to america, Cisco is nicely positioned to assist join and shield these capital-intensive investments at scale,” Robbins mentioned.
By way of tariff impacts, CFO Mark Patterson commented that whereas the corporate has “some readability on tariffs, we’re nonetheless working in a posh atmosphere.” The corporate is working off the belief that present tariffs and exemptions — 30% for China, 25% for Mexico and 35% for Canada, with some exceptions for sure part or gadgets — stay in place by the top of its subsequent fiscal 12 months. It can additionally see a “small impression” from tariffs on supplies like copper, metal, and aluminum. Patterson mentioned that Cisco will use “the pliability and agility we’ve got constructed into our operations over the previous few years” plus the scale and scale of its international provide chain to take care of tariff impacts.
Robbins framed Cisco’s AI alternative throughout three “distinct however related pillars: Ai coaching infrastructure for hyperscalers; AI inference and enterprise clouds; and AI community connectivity as prospects use Cisco platforms to “assist modernize, safe and automate their community operations to arrange for pervasive deployment of AI brokers and functions.”
Robbins added: “As we transfer in the direction of Agentic AI and the demand for inferencing expands to the enterprise and end-user networking environments, visitors on the community will attain unprecedented ranges. Community visitors is not going to solely enhance past the peaks of present chatbot interplay, however will stay constantly excessive with brokers in fixed interplay.”
