CSCO · 10-K · 2025A · Full report

R&D Investment in AI

CISCO SYSTEMS, INC. · 2025-09-03 · Importance 68 · Surprise 58

R&D expense increased to $9,300 million in fiscal 2025 from $7,983 million in fiscal 2024, an increase of $1,317 million year over year (greater than a 10% increase). Management attributes the increase primarily to higher headcount‑related expenses reflecting investments in AI, plus share‑based compensation, cash compensation from acquisitions, and discretionary spending. Cisco positions these investments as part of its strategic priorities to drive innovation across its technologies and to support AI‑related product and services growth. The increase in R&D spending is reflected in operating expense trends for fiscal 2025.