CSCO · 10-K · 2025A · Full report
Software and Subscription Revenue Mix
CISCO SYSTEMS, INC. · 2025-09-03 · Importance 79 · Surprise 66
Total software revenue rose to $22.3 billion, an increase of 21% year over year, with management attributing the improvement to the contribution from Splunk. Total subscription revenue increased 15%, also driven by Splunk, indicating a meaningful shift toward recurring and SaaS-like revenue. The increase supported services revenue growth in software, cloud and virtualization support. Splunk therefore materially shifted Cisco’s revenue mix toward software and subscription models.
Key facts
- Total software revenue in fiscal 2025: $22.3 billion, an increase of 21% year over year.
- Total subscription revenue in fiscal 2025 increased 15% year over year.
- Cisco stated the increase in deferred product revenue of 2% was primarily due to increased deferrals related to its recurring software offerings.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +6.5% | Total software revenue in fiscal 2025: $22.3 billion, an increase of 21% year over year. |
| revenue | positive | realized | — | Total subscription revenue in fiscal 2025 increased 15% year over year. |