CSCO · 10-K · 2025A · Full report
Amortization of Purchased Intangible Assets
CISCO SYSTEMS, INC. · 2025-09-03 · Importance 79 · Surprise 92
Amortization of purchased intangible assets increased to $2,202 million in fiscal 2025 from $1,653 million in fiscal 2024, primarily due to the acquisition of Splunk and other recent acquisitions. Management notes that the Splunk acquisition contributed materially to software, subscription and product revenue growth in fiscal 2025 and also increased amortization expense (noted as reducing product gross margin by ~0.4 percentage points). Impairment charges related to purchased intangible assets were $40 million in fiscal 2025 versus $145 million in fiscal 2024. Cisco discloses that acquisition-related amortization and share-based compensation were primary drivers of lower operating income as a percentage of revenue in fiscal 2025.
Key facts
- Amortization of purchased intangible assets in fiscal 2025: total $2,202 million, up from $1,653 million in fiscal 2024.
- Amortization of purchased intangible assets included $1,174 million classified in cost of sales in fiscal 2025.
- Increase in amortization of purchased intangible assets was primarily due to the acquisition of Splunk and other recent acquisitions.
- Impairment charges related to purchased intangible assets were $40 million in fiscal 2025 and $145 million in fiscal 2024.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -1.9% | Amortization of purchased intangible assets included $1,174 million classified in cost of sales in fiscal 2025. |
| operating_income | negative | realized | -0.9% | Amortization of purchased intangible assets in fiscal 2025: total $2,202 million, up from $1,653 million in fiscal 2024. |
| operating_income | negative | realized | — | Increase in amortization of purchased intangible assets was primarily due to the acquisition of Splunk and other recent acquisitions. |