CSCO · 10-K · 2025A · Full report

AI Infrastructure Investment

CISCO SYSTEMS, INC. · 2025-09-03 · Importance 57 · Surprise 50

Cisco reports that product revenue growth in the service provider and cloud market was driven by AI infrastructure revenue from webscale customers, contributing to product revenue increases in the Americas and overall company revenue growth in fiscal 2025. Product revenue in the Americas was $24,637 million, up $1,495 million year over year, with growth driven by enterprise and service provider/cloud markets (the latter led by AI infrastructure). To meet webscale and other customer demand Cisco entered additional purchase commitments in fiscal 2025 related to manufacturing Cisco Silicon One and other products and expects to continue entering such commitments in fiscal 2026. These AI infrastructure dynamics are driving product mix shifts (notably declines in Networking and growth in Security/Observability tied to acquisitions) and have operational implications for inventory, purchase commitments and gross margin.