Cisco Systems, Inc. reported third quarter revenue of $14.1 billion for the period ended April 26, 2025, reflecting an increase of 11% year-over-year. Total product revenue reached $10.4 billion, up 15% from the same quarter last year, while services revenue grew by 3% to $3.8 billion. Cisco’s non-GAAP net income was $3.8 billion, translating to earnings per share of $0.96, a 9% increase compared to the previous year.

The company achieved growth across several customer markets, with product orders increasing by 20% year-over-year, and a 9% increase when excluding contributions from the acquisition of Splunk. Notably, product orders from cloud and service provider customers surged by 32%, while enterprise orders were up 22%. Public sector orders also exhibited growth, rising 8% year-over-year.

Continued strong performance was observed in various product categories, particularly security, which experienced a 54% increase in revenue. Observability services grew by 24%, and networking revenue increased by 8%. Collaboration services rose 4%, thanks to growth in devices and the Webex suite.

For guidance, Cisco anticipates fourth quarter revenue between $14.5 billion and $14.7 billion, with expected non-GAAP earnings per share ranging from $0.96 to $0.98. The company also provided full fiscal year 2025 guidance, predicting revenue between $56.5 billion and $56.7 billion and non-GAAP earnings per share between $3.77 and $3.79.

The firm reported total gross margin at 68.6%, reflecting a 30 basis point improvement year-over-year. Non-GAAP product gross margin increased by 70 basis points to 67.6%. Operating cash flow rose by 2% to $4.1 billion, while total cash, cash equivalents, and investments were $15.6 billion at the end of the quarter.

Capital allocation efforts returned $3.1 billion to shareholders during the quarter, which included $1.6 billion in dividends and $1.5 billion in share repurchases. So far, Cisco has returned a total of $9.6 billion to shareholders year-to-date. The third quarter signified a continuation of Cisco’s consistent performance, meeting and exceeding guidance targets across multiple metrics.