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Cisco Systems (CSCO) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed May 20, 2025
Cisco Systems (CSCO) reported revenue of $14.1B for the third quarter fiscal 2025 (Q3 FY25), +11% from a year earlier and +1% from the quarter before. Operating margin was 22.6%, net earnings $2.5B (17.6% of revenue).
Cisco Systems, Q3 FY25: revenue $14.1B (+11% year over year), operating margin 22.6%, net earnings $2.5B, operating cash flow $4.1B. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $14.1B | +1% | +11% |
| Gross profit | $9.3B | +2% | +12% |
| Operating profit | $3.2B | +3% | +46% |
| Net earnings | $2.5B | +3% | +32% |
| Operating cash flow | $4.1B | +81% | +2% |
| Free cash flow | $3.8B | +87% | -0.2% |
What changed
Revenue was $14.1B in Q3 FY25, up 11% year over year and up 1% from the previous quarter. Networking was the largest line at 50% of revenue. Security added $0.71B year over year (up 54%), 49% of the total change.
Gross margin was 65.6%, up 0.4 points from a year earlier. Operating profit was $3.2B, a 22.6% margin (up 5.4 points year over year). Of the extra revenue versus a year earlier, 70% reached operating profit, above the 17% margin then. Operating expenses fell 0% while revenue rose 11%. The fastest-growing cost line was Research & development (+20%). Net earnings were $2.5B, up 32% year over year. The effective tax rate was 15.5%.
Operating cash flow was $4.1B (up 2% year over year), 163% of net earnings. Non-cash charges added back $0.94B of share-based compensation. Working capital and other items added $0.62B. Capital expenditures of $0.26B left free cash flow of $3.8B.
Questions
What was Cisco Systems' revenue in the third quarter fiscal 2025?
Cisco Systems (CSCO) reported revenue of $14.1B for the third quarter fiscal 2025 (Q3 FY25), +11% from a year earlier and +1% from the quarter before.
Was Cisco Systems profitable in the third quarter fiscal 2025?
Operating profit was $3.2B (22.6% of revenue) and net earnings $2.5B.
Source: Cisco Systems 10-Q on SEC EDGAR.