Cisco Earnings Lift Stock Toward 25-Year High

Cisco Systems reported fiscal Q1 2025 earnings on Nov. 12, 2025, showing stronger results that led management to raise full-year revenue and earnings per share (EPS) guidance. Executives cited surging AI networking orders, pushing the stock toward its highest level in 25 years.

Quarter Results, Guidance, and AI Momentum

Cisco’s fiscal Q1 revenue reached $14.9 billion, up 8% year-over-year, exceeding consensus estimates. The company raised its full-year guidance to an EPS range of $4.08 to $4.14 and revenue between $60.2 billion and $61 billion. Executives attributed the outlook upgrade to strength across enterprise customers and a multi-billion-dollar refresh of legacy data-center equipment.

Product orders included more than $800 million in AI infrastructure for Q4 and $2 billion for fiscal 2025, doubling Cisco’s initial target. Demand from hyperscalers and sovereign AI projects is supporting this pipeline. The security business saw order growth exceeding 20% in the quarter, with Splunk cross-selling adding roughly 300 new customers. Cisco expects security revenue to grow at a 15% to 17% compound annual rate, driven by the Splunk integration.

Chief Financial Officer Mark Patterson noted tariffs of about 30% on China, 25% on Mexico, and 35% on Canada but said semiconductor exemptions limited any gross-margin impact.

Stock Performance and Competitive Position

Cisco’s shares have rallied about 25% year-to-date, trading just below their all-time high from March 2000. Despite this, the company trails some peers such as Arista Networks in recent performance. Analysts had anticipated robust enterprise and webscale spending entering the quarter, supporting investor optimism.

“Cisco recorded more than $800 million in Q4 AI orders and $2 billion for FY 2025, doubling its initial goal,” management said.