CSCO · 10-K · 2025A

CISCO SYSTEMS, INC.

Filed 2025-09-03 · Technology

Ranked Events

• Security Product GrowthImportance 96 · Surprise 100
  Security product revenue increased 59% (an incremental $3.0 billion) to $8.1 billion in fiscal 2025, driven largely by Threat Intelligence, Detection, and Response offerings that include Splunk. Growth also reflected…
• Outstanding IndebtednessImportance 79 · Surprise 66
  Total principal amount of senior notes outstanding was $24,750 million as of July 26, 2025 versus $20,250 million as of July 27, 2024, reflecting issuance of senior notes for an aggregate principal amount of $5.0…
• Amortization of Purchased Intangible AssetsImportance 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…
• Software and Subscription Revenue MixImportance 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…
• Inventory and Purchase CommitmentsImportance 78 · Surprise 74
  Inventory totaled $3,164 million as of July 26, 2025, a 6% decrease year-over-year, while inventory purchase commitments with contract manufacturers and suppliers totaled $7,599 million, a 47% increase versus fiscal…
• Commercial Paper TrendsImportance 77 · Surprise 82
  Commercial paper notes outstanding were $3.5 billion as of July 26, 2025, down from $10.9 billion as of July 27, 2024, reflecting a $7.4 billion reduction in short-term market borrowings year over year. Cisco maintains…
• Operating Cash Flow TrendsImportance 76 · Surprise 56
  Net cash provided by operating activities increased to $14,193 million in fiscal 2025 and free cash flow rose to $13,288 million from $10,210 million in fiscal 2024, an improvement of $3,078 million. The increase…
• Supply Chain Impacts and RisksImportance 70 · Surprise 42
  Cisco states that in past periods it secured long-term supply to mitigate component shortages, which increased inventory supply chain balances compared to historical levels, and that in fiscal 2025 it entered into…
• R&D Investment in AIImportance 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…
• Remaining Performance ObligationsImportance 65 · Surprise 32
  Total remaining performance obligations increased 6% year-over-year to $43,533 million in fiscal 2025, with product RPO up 8% to $21,572 million and services RPO up 5% to $21,961 million. Approximately 50% of total RPO…
• Interest Rate and Refinancing ExposureImportance 63 · Surprise 64
  In fiscal 2025 Cisco reported interest income of $1,001 million versus $1,365 million in fiscal 2024 (a decrease of $364 million) and interest expense of $1,593 million versus $1,006 million in fiscal 2024 (an increase…
• Operating Expense TrendsImportance 63 · Surprise 50
  Combined R&D, sales and marketing, and G&A expenses increased by $2,098 million to $23,258 million, rising from 39.3% to 41.1% of revenue. R&D alone increased $1,317 million (to $9,300 million), driven by investments…
• Financing Guarantees and Channel FinancingImportance 61 · Surprise 32
  Net financing receivables were $6,527 million as of July 26, 2025, a 3% decrease from $6,714 million at the end of fiscal 2024, with loan receivables net of $5,591 million. Channel partner financing volumes were $24.9…
• Income Tax Rate ChangesImportance 61 · Surprise 92
  The provision for income taxes resulted in an effective tax rate of 8.3% for fiscal 2025 versus 15.6% for fiscal 2024, a net decrease of 7.3 percentage points. Management attributes the majority of the reduction to a…
• AI Infrastructure InvestmentImportance 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…
• Contractual ObligationsImportance 56 · Surprise 24
  Cisco reported total contractual obligations of $45,576 million by period as of July 26, 2025, with total including other long-term liabilities of $47,816 million. Major components include operating leases of $1,748…
• Revenue Performance and MixImportance 55 · Surprise 32
  Total revenue grew 5% to $56.7 billion in fiscal 2025, driven by product revenue (+6%, $41.6 billion) and services (+3%). The full‑year contribution from the Splunk acquisition materially supported software and…
• Restructuring and HeadcountImportance 51 · Surprise 50
  Total restructuring and other charges included in operating expenses were $744 million in fiscal 2025 and $789 million in fiscal 2024.,In the first quarter of fiscal 2025 the company announced a restructuring plan expected to impact approximately 7% of its global workforce with estimated pre-tax charges of approximately $1 billion; charges of $744 million were incurred in fiscal 2025 against that plan.,The company expects the fiscal 2025 restructuring plan to be substantially completed by the end of the second quarter of fiscal 2026.
• Deferred RevenueImportance 49 · Surprise 32
  Total deferred revenue increased 1% in fiscal 2025 to $28,779 million as of July 26, 2025, compared with $28,475 million a year earlier. Deferred product revenue was $13,490 million (up 2%), primarily due to increased…
• Observability GrowthImportance 49 · Surprise 66
  Observability product revenue increased 26%, or $218 million, driven primarily by Splunk’s Observability Suite and growth in ThousandEyes network services. The firm cites a partial offset from declines in monitoring…

Revenue by Product (in millions)

Revenue by Geography (in millions)