CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2025 EARNINGS

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News Summary:

— Strong topline performance at the high end of our guidance ranges:

— Q4 revenue of $14.7 billion, up 8% year over year

— FY 2025 revenue of $56.7 billion, up 5% year over year

— Q4 product orders up 7% year over year with growth across all geographies, demonstrating robust demand for Cisco's technologies

— AI Infrastructure orders taken from webscale customers exceeded $800 million, bringing the FY 2025 total to over $2 billion, more than double the original $1 billion target

— Strong profitability in Q4:

— GAAP gross margin of 65.7% and non-GAAP gross margin of 68.4%, at the high end of our guidance range

— GAAP EPS of $0.71 and non-GAAP EPS of $0.99, above the high end of our guidance range

— Q4 FY 2025 Results:

— Revenue: $14.7 billion

— Increase of 8% year over year

— Earnings per Share: GAAP: $0.71; Non-GAAP: $0.99

— GAAP EPS increased 31% year over year

— Non-GAAP EPS increased 14% year over year

— FY 2025 Results:

— Revenue: $56.7 billion

— Increase of 5% year over year

— Earnings per Share: GAAP: $2.61; Non-GAAP: $3.81

— GAAP EPS increased 3% year over year

— Non-GAAP EPS increased 2% year over year

— Q1 FY 2026 Guidance (1):

— Revenue: $14.65 billion to $14.85 billion

— Earnings per Share: GAAP: $0.63 to $0.68; Non-GAAP: $0.97 to $0.99

— FY 2026 Guidance (1):

— Revenue: $59.0 billion to $60.0 billion

— Earnings per Share: GAAP: $2.79 to $2.91; Non-GAAP: $4.00 to $4.06

(1) Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Cisco today reported fourth quarter and fiscal year results for the period ended July26, 2025. Cisco reported fourth quarter revenue of $14.7 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.8 billion or $0.71 per share, and non-GAAP net income of $4.0 billion or $0.99 per share.

“We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution,” said Chuck Robbins, chair and CEO of Cisco. “The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target, indicating a massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era.”

“In Q4, revenue, gross margin and operating margin were at the high end of our guidance ranges, earnings per share was above the guidance range and we delivered solid operating cash flow,” said Mark Patterson, CFO of Cisco. “As we enter fiscal 2026, we remain focused on making strategic investments in innovation, driving durable, profitable growth and delivering shareholder value.”

Q4 GAAP Results Q4 FY 2025 Q4 FY 2024 Vs. Q4 FY 2024Revenue $ 14.7 billion $ 13.6 billion 8%Net Income $ 2.8 billion $ 2.2 billion 31%Diluted Earnings per Share (EPS) $ 0.71 $ 0.54 31%Q4 Non-GAAP Results Q4 FY 2025 Q4 FY 2024 Vs. Q4 FY 2024Net Income $ 4.0 billion $ 3.5 billion 12%EPS $ 0.99 $ 0.87 14%Fiscal Year GAAP Results FY 2025 FY 2024 Vs. FY 2024Revenue $ 56.7 billion $ 53.8 billion 5%Net Income $ 10.5 billion $ 10.3 billion 1%EPS $ 2.61 $ 2.54 3%Fiscal Year Non-GAAP Results FY 2025 FY 2024 Vs. FY 2024Net Income $ 15.2 billion $ 15.2 billion -%EPS $ 3.81 $ 3.73 2%

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Cisco Declares Quarterly Dividend

Cisco has declared a quarterly dividend of $0.41 per common share to be paid on October 22, 2025, to all stockholders of record as of the close of business on October 3, 2025. Future dividends will be subject to Board approval.

Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q4 FY 2025 Highlights

Revenue — Total revenue was $14.7 billion, up 8%, with product revenue up 10% and services revenue flat.

Revenue by geographic segment was: Americas up 9%, EMEA up 4%, and APJC up 7%. Product revenue performance reflected growth in Networking up 12%, Security up 9%, Observability up 4%, and Collaboration up 2%.

Gross Margin –On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.7%, 64.7%, and 68.3%, respectively, as compared with 64.4%, 63.0%, and 67.8%, respectively, in the fourth quarter of fiscal 2024.

On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 68.4%, 67.5%, and 70.8%, respectively, as compared with 67.9%, 67.0%, and 70.3%, respectively, in the fourth quarter of fiscal 2024.

Total gross margins by geographic segment were: 68.0% for the Americas, 71.7% for EMEA and 64.2% for APJC.

Operating Expenses –On a GAAP basis, operating expenses were $6.2 billion, flat year over year, and were 42.2% of revenue. Non-GAAP operating expenses were $5.0 billion, up 4%, and were 34.1% of revenue.

Operating Income — GAAP operating income was $3.4 billion, up 32%, with GAAP operating margin of 23.5%. Non-GAAP operating income was $5.0 billion, up 13%, with non-GAAP operating margin at 34.3%.

Provision for Income Taxes — The GAAP tax provision rate was 15.8%. The non-GAAP tax provision rate was 18.1%.

Net Income and EPS — On a GAAP basis, net income was $2.8 billion, an increase of 31%, and EPS was $0.71, an increase of 31%. On a non-GAAP basis, net income was $4.0 billion, an increase of 12%, and EPS was $0.99, an increase of 14%.

Cash Flow from Operating Activities — $4.2 billion for the fourth quarter of fiscal 2025, an increase of 14% compared with $3.7 billion for the fourth quarter of fiscal 2024.

FY 2025 Highlights

Revenue — Total revenue was $56.7 billion, an increase of 5%.

Net Income and EPS — On a GAAP basis, net income was $10.5 billion, an increase of 1%, and EPS was $2.61, an increase of 3%. On a non-GAAP basis, net income was $15.2 billion, flat compared to fiscal 2024, and EPS was $3.81, an increase of 2%.

Cash Flow from Operating Activities — $14.2 billion for fiscal 2025, an increase of 30% compared with $10.9 billion for fiscal 2024.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments — $16.1 billion at the end of the fourth quarter of fiscal 2025, compared with $15.6 billion at the end of the third quarter of fiscal 2025, and compared with $17.9 billion at the end of fiscal 2024.

Remaining Performance Obligations (RPO) — $43.5 billion, up 6% in total, with 50% of this amount expected to be recognized as revenue over the next 12 months. Product RPO was up 8% and services RPO was up 5%.

Deferred Revenue — $28.8 billion, up 1% in total, with deferred product revenue up 2%. Deferred services revenue was flat.

Capital Allocation — In the fourth quarter of fiscal 2025, we returned $2.9 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.41 per common share, or $1.6 billion, and repurchased approximately 19 million shares of common stock under our stock repurchase program at an average price of $64.65 per share for an aggregate purchase price of $1.3 billion. The remaining authorized amount for stock repurchases under the program is $14.2 billion with no termination date.

Guidance

Cisco estimates the following results for the first quarter of fiscal 2026:

Q1 FY 2026Revenue $14.65 billion – $14.85 billionNon-GAAP gross margin 67.5% – 68.5%Non-GAAP operating margin 33% – 34%Non-GAAP EPS $0.97 – $0.99

Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Cisco estimates that GAAP EPS will be $0.63 to $0.68 for the first quarter of fiscal 2026.

Cisco estimates the following results for fiscal 2026:

FY 2026Revenue $59.0 billion – $60.0 billionNon-GAAP EPS $4.00 – $4.06

Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Cisco estimates that GAAP EPS will be $2.79 to $2.91 for fiscal 2026.

Our Q1 FY 2026 and FY 2026 guidance assumes an effective tax provision rate of approximately 18% for GAAP and approximately 19% for non-GAAP results.

A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Editor's Notes:

— Q4 fiscal year 2025 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, August13, 2025 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

— Conference call replay will be available from 4:00 p.m. Pacific Time, August 13, 2025 to 10:00 p.m. Pacific Time, August 19, 2025 at 1-800-391-9853 (United States) or 1-203-369-3269 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.

— Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August13, 2025. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

CISCO SYSTEMS, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per-share amounts)(Unaudited) Three Months Ended Fiscal Year Ended July 26, July 27, July 26, July 27, 2025 2024 2025 2024REVENUE:Product $ 10,886 $ 9,858 $ 41,608 $ 39,253Services 3,787 3,784 15,046 14,550Total revenue 14,673 13,642 56,654 53,803COST OF SALES:Product 3,839 3,644 14,766 14,339Services 1,199 1,217 4,743 4,636Total cost of sales 5,038 4,861 19,509 18,975GROSS MARGIN 9,635 8,781 37,145 34,828OPERATING EXPENSES:Research and development 2,380 2,179 9,300 7,983Sales and marketing 2,818 2,841 10,966 10,364General and administrative 706 763 2,992 2,813Amortization of purchased intangible assets 254 268 1,028 698Restructuring and other charges 35 112 744 789Total operating expenses 6,193 6,163 25,030 22,647OPERATING INCOME 3,442 2,618 12,115 12,181Interest income 227 270 1,001 1,365Interest expense (368) (418) (1,593) (1,006)Other income (loss), net 53 (74) (68) (306)Interest and other income (loss), net (88) (222) (660) 53INCOME BEFORE PROVISION FOR INCOME TAXES 3,354 2,396 11,455 12,234Provision for income taxes 531 234 1,002 1,914NET INCOME $ 2,823 $ 2,162 $ 10,453 $ 10,320Net income per share:Basic $ 0.71 $ 0.54 $ 2.63 $ 2.55Diluted $ 0.71 $ 0.54 $ 2.61 $ 2.54Shares used in per-share calculation:Basic 3,960 4,018 3,976 4,043Diluted 3,992 4,035 3,998 4,062CISCO SYSTEMS, INC.REVENUE BY SEGMENT(In millions, except percentages) July 26, 2025 Three Months Ended Fiscal Year Ended Amount Y/Y% Amount Y/Y%Revenue:Americas $ 8,822 9% $ 33,656 5%EMEA 3,645 4% 14,824 5%APJC 2,206 7% 8,174 6%Total $ 14,673 8% $ 56,654 5%Amounts may not sum and percentages may not recalculate due to rounding.CISCO SYSTEMS, INC.GROSS MARGIN PERCENTAGE BY SEGMENT(In percentages) July 26, 2025 Three Months Ended Fiscal Year EndedGross Margin Percentage:Americas 68.0% 68.2%EMEA 71.7% 71.1%APJC 64.2% 66.4%CISCO SYSTEMS, INC.REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES(In millions, except percentages) July 26, 2025 Three Months Ended Fiscal Year Ended Amount Y/Y % Amount Y/Y %Revenue:Networking $ 7,633 12% $ 28,304 (3)%Security 1,952 9% 8,094 59%Collaboration 1,042 2% 4,154 1%Observability 259 4% 1,055 26%Total Product 10,886 10% 41,608 6%Services 3,787 -% 15,046 3%Total $ 14,673 8% $ 56,654 5%Amounts may not sum and percentages may not recalculate due to rounding.CISCO SYSTEMS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited) July 26, July 27, 2025 2024ASSETSCurrent assets:Cash and cash equivalents $ 8,346 $ 7,508Investments 7,764 10,346Accounts receivable, net of allowance 6,701 6,685of $69 at July26, 2025 and $87 at July27, 2024Inventories 3,095 3,373Financing receivables, net 3,061 3,338Other current assets 6,374 5,612Total current assets 35,341 36,862Property and equipment, net 2,113 2,090Financing receivables, net 3,466 3,376Goodwill 59,136 58,660Purchased intangible assets, net 9,175 11,219Deferred tax assets 7,274 6,262Other assets 6,059 5,944TOTAL ASSETS $ 122,564 $ 124,413LIABILITIES AND EQUITYCurrent liabilities:Short-term debt $ 5,232 $ 11,341Accounts payable 2,528 2,304Income taxes payable 1,857 1,439Accrued compensation 3,611 3,608Deferred revenue 16,416 16,249Other current liabilities 5,420 5,643Total current liabilities 35,064 40,584Long-term debt 22,861 19,621Income taxes payable 2,165 3,985Deferred revenue 12,363 12,226Other long-term liabilities 2,995 2,540Total liabilities 75,448 78,956Total equity 47,116 45,457TOTAL LIABILITIES AND EQUITY $ 122,564 $ 124,413CISCO SYSTEMS, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited) Three Months Ended Fiscal Year Ended July 26, July 27, July 26, July 27, 2025 2024 2025 2024Cash flows from operating activities:Net income $ 2,823 $ 2,162 $ 10,453 $ 10,320Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, and other 635 823 2,811 2,507Share-based compensation expense 948 800 3,641 3,074Provision for receivables 7 15 24 34Deferred income taxes (259) (727) (1,051) (972)(Gains) losses on divestitures, investments and other, net (90) (9) (38) 215Change in operating assets and liabilities, net of effects of acquisitions and divestitures:Accounts receivable (1,428) (1,575) (22) (289)Inventories (263) (255) 278 275Financing receivables (291) (16) 214 76Other assets (407) (289) (923) (671)Accounts payable 267 210 257 (90)Income taxes, net 163 684 (1,839) (4,539)Accrued compensation 378 396 (53) (696)Deferred revenue 772 1,009 248 1,220Other liabilities 979 502 193 416Net cash provided by operating activities 4,234 3,730 14,193 10,880Cash flows from investing activities:Purchases of investments (1,523) (1,186) (4,589) (4,230)Proceeds from sales of investments 415 262 2,643 4,136Proceeds from maturities of investments 958 563 4,943 6,367Acquisitions, net of cash and cash equivalents acquired and divestitures – (120) (291) (25,994)Purchases of investments in privately held companies (118) (202) (383) (284)Return of investments in privately held companies 198 56 306 202Acquisition of property and equipment (217) (198) (905) (670)Other 14 (3) 9 (5)Net cash provided by (used in) investing activities (273) (828) 1,733 (20,478)Cash flows from financing activities:Issuances of common stock 416 367 736 714Repurchases of common stock – repurchase program (1,252) (2,015) (6,000) (5,787)Shares repurchased for tax withholdings on vesting of restricted stock units (312) (227) (1,222) (992)Short-term borrowings, original maturities of 90 days or less, net 448 (1,069) (31) 478Issuances of debt 1,904 7,659 19,292 31,818Repayments of debt (3,528) (7,631) (22,073) (9,826)Repayments of Splunk convertible debt, net – – – (3,140)Dividends paid (1,625) (1,606) (6,437) (6,384)Other – 15 (80) (37)Net cash provided by (used in) financing activities (3,949) (4,507) (15,815) 6,844Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (20) 8 (43) (31)Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents (8) (1,597) 68 (2,785)Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 8,918 10,439 8,842 11,627Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 8,910 $ 8,842 $ 8,910 $ 8,842Supplemental cash flow information:Cash paid for interest $ 130 $ 233 $ 1,500 $ 583Cash paid for income taxes, net $ 627 $ 276 $ 3,892 $ 7,426CISCO SYSTEMS, INC.REMAINING PERFORMANCE OBLIGATIONS(In millions, except percentages) July 26, 2025 April 26, 2025 July 27, 2024 Amount Y/Y % Amount Y/Y % Amount Y/Y %Product $ 21,572 8% $ 20,752 10% $ 20,055 27%Services 21,961 5% 20,915 5% 20,993 10%Total $ 43,533 6% $ 41,667 7% $ 41,048 18%We expect 50% of total RPO at July26, 2025 to be recognized as revenue over the next 12 months.CISCO SYSTEMS, INC.DEFERRED REVENUE(In millions) July 26, April 26, July 27, 2025 2025 2024Deferred revenue:Product $ 13,490 $ 13,170 $ 13,219Services 15,289 14,821 15,256Total $ 28,779 $ 27,991 $ 28,475Reported as:Current $ 16,416 $ 16,081 $ 16,249Noncurrent 12,363 11,910 12,226Total $ 28,779 $ 27,991 $ 28,475CISCO SYSTEMS, INC.DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK(In millions, except per-share amounts) DIVIDENDS STOCK REPURCHASE PROGRAM TOTALQuarter Ended Per Share Amount Shares Weighted- Amount Amount Average Price per ShareFiscal 2025July 26, 2025 $ 0.41 $ 1,625 19 $ 64.65 $ 1,252 $ 2,877April 26, 2025 $ 0.41 $ 1,627 25 $ 59.78 $ 1,504 $ 3,131January 25, 2025 $ 0.40 $ 1,593 21 $ 58.58 $ 1,236 $ 2,829October 26, 2024 $ 0.40 $ 1,592 40 $ 49.56 $ 2,003 $ 3,595Fiscal 2024July 27, 2024 $ 0.40 $ 1,606 43 $ 46.80 $ 2,002 $ 3,608April 27, 2024 $ 0.40 $ 1,615 26 $ 49.22 $ 1,256 $ 2,871January 27, 2024 $ 0.39 $ 1,583 25 $ 49.54 $ 1,254 $ 2,837October 28, 2023 $ 0.39 $ 1,580 23 $ 54.53 $ 1,252 $ 2,832CISCO SYSTEMS, INC.RECONCILIATIONS OF GAAP TO NON-GAAP MEASURESGAAP TO NON-GAAP NET INCOME(In millions) Three Months Ended Fiscal Year Ended July 26, July 27, July 26, July 27, 2025 2024 2025 2024GAAP net income $ 2,823 $ 2,162 $ 10,453 $ 10,320Adjustments to cost of sales:Share-based compensation expense 150 133 584 514Amortization of acquisition-related intangible assets 233 331 1,150 936Acquisition/divestiture-related costs 13 21 66 34Supplier component remediation charge (adjustment) – – (7) -Total adjustments to GAAP cost of sales 396 485 1,793 1,484Adjustments to operating expenses:Share-based compensation expense 797 660 3,019 2,537Amortization of acquisition-related intangible assets 255 268 1,029 698Acquisition/divestiture-related costs 104 297 791 700Russia-Ukraine war costs – – – (12)Significant asset impairments and restructurings 35 112 744 789Total adjustments to GAAP operating expenses 1,191 1,337 5,583 4,712Adjustments to interest and other income (loss), net:Russia-Ukraine war costs – 49 – 49(Gains) and losses on investments (115) (32) (187) 100Total adjustments to GAAP interest and other income (loss), net (115) 17 (187) 149Total adjustments to GAAP income before provision for income taxes 1,472 1,839 7,189 6,345Income tax effect of non-GAAP adjustments (344) (315) (1,600) (1,360)Significant tax matters (1) – (155) (829) (155)Total adjustments to GAAP provision for income taxes (344) (470) (2,429) (1,515)Non-GAAP net income $ 3,951 $ 3,531 $ 15,213 $ 15,150(1) The fiscal year ended July26, 2025 includes a $720 million benefit due to an August 2024 U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.CISCO SYSTEMS, INC.RECONCILIATIONS OF GAAP TO NON-GAAP MEASURESGAAP TO NON-GAAP EPS Three Months Ended Fiscal Year Ended July 26, July 27, July 26, July 27, 2025 2024 2025 2024GAAP EPS $ 0.71 $ 0.54 $ 2.61 $ 2.54Adjustments to GAAP:Share-based compensation expense 0.24 0.20 0.90 0.75Amortization of acquisition-related intangible assets 0.12 0.15 0.55 0.40Acquisition/divestiture-related costs 0.03 0.08 0.21 0.18Russia-Ukraine war costs – 0.01 – 0.01Significant asset impairments and restructurings 0.01 0.03 0.19 0.19(Gains) and losses on investments (0.03) (0.01) (0.05) 0.02Income tax effect of non-GAAP adjustments (0.09) (0.08) (0.40) (0.33)Significant tax matters – (0.04) (0.21) (0.04)Non-GAAP EPS $ 0.99 $ 0.87 $ 3.81 $ 3.73Amounts may not sum due to rounding.CISCO SYSTEMS, INC.RECONCILIATIONS OF GAAP TO NON-GAAP MEASURESGROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME(In millions, except percentages) Three Months Ended July 26, 2025 Product Services Total Operating Y/Y Operating Y/Y Interest Net Y/Y Gross Gross Gross Expenses Income and Income Margin Margin Margin other income (loss), netGAAP amount $ 7,047 $ 2,588 $ 9,635 $ 6,193 -% $ 3,442 32% $ (88) $ 2,823 31%% of revenue 64.7% 68.3% 65.7% 42.2% 23.5% (0.6)% 19.2%Adjustments to GAAP amounts:Share-based compensation expense 66 84 150 797 947 – 947Amortization of acquisition-related intangible assets 233 – 233 255 488 – 488Acquisition/divestiture-related costs 2 11 13 104 117 – 117Significant asset impairments and restructurings – – – 35 35 – 35(Gains) and losses on investments – – – – – (115) (115)Income tax effect/significant tax matters – – – – – – (344)Non-GAAP amount $ 7,348 $ 2,683 $ 10,031 $ 5,002 4% $ 5,029 13% $ (203) $ 3,951 12%% of revenue 67.5% 70.8% 68.4% 34.1% 34.3% (1.4)% 26.9% Three Months Ended July 27, 2024 Product Services Total Operating Operating Interest Net Gross Gross Gross Expenses Income and Income Margin Margin Margin other income (loss), netGAAP amount $ 6,214 $ 2,567 $ 8,781 $ 6,163 $ 2,618 $ (222) $ 2,162% of revenue 63.0% 67.8% 64.4% 45.2% 19.2% (1.6)% 15.8%Adjustments to GAAP amounts:Share-based compensation expense 57 76 133 660 793 – 793Amortization of acquisition-related intangible assets 331 – 331 268 599 – 599Acquisition/divestiture-related costs 5 16 21 297 318 – 318Russia-Ukraine war costs – – – – – 49 49Significant asset impairments and restructurings – – – 112 112 – 112(Gains) and losses on investments – – – – – (32) (32)Income tax effect/significant tax matters – – – – – – (470)Non-GAAP amount $ 6,607 $ 2,659 $ 9,266 $ 4,826 $ 4,440 $ (205) $ 3,531% of revenue 67.0% 70.3% 67.9% 35.4% 32.5% (1.5)% 25.9%Amounts may not sum and percentages may not recalculate due to rounding.CISCO SYSTEMS, INC.RECONCILIATIONS OF GAAP TO NON-GAAP MEASURESGROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME(In millions, except percentages) Fiscal Year Ended July 26, 2025 Product Services Total Operating Y/Y Operating Y/Y Interest Net Y/Y Gross Gross Gross Expenses Income and Income Margin Margin Margin other income (loss), netGAAP amount $ 26,842 $ 10,303 $ 37,145 $ 25,030 11% $ 12,115 (1)% $ (660) $ 10,453 1%% of revenue 64.5% 68.5% 65.6% 44.2% 21.4% (1.2)% 18.5%Adjustments to GAAP amounts:Share-based compensation expense 255 329 584 3,019 3,603 – 3,603Amortization of acquisition-related intangible assets 1,150 – 1,150 1,029 2,179 – 2,179Acquisition/divestiture-related costs 14 52 66 791 857 – 857Supplier component remediation charge (adjustment) (7) – (7) – (7) – (7)Significant asset impairments and restructurings – – – 744 744 – 744(Gains) and losses on investments – – – – – (187) (187)Income tax effect/significant tax matters – – – – – – (2,429)Non-GAAP amount $ 28,254 $ 10,684 $ 38,938 $ 19,447 8% $ 19,491 6% $ (847) $ 15,213 -%% of revenue 67.9% 71.0% 68.7% 34.3% 34.4% (1.5)% 26.9% Fiscal Year Ended July 27, 2024 Product Services Total Operating Operating Interest Net Gross Gross Gross Expenses Income and Income Margin Margin Margin other income (loss), netGAAP amount $ 24,914 $ 9,914 $ 34,828 $ 22,647 $ 12,181 $ 53 $ 10,320% of revenue 63.5% 68.1% 64.7% 42.1% 22.6% 0.1% 19.2%Adjustments to GAAP amounts:Share-based compensation expense 214 300 514 2,537 3,051 – 3,051Amortization of acquisition-related intangible assets 936 – 936 698 1,634 – 1,634Acquisition/divestiture-related costs 10 24 34 700 734 – 734Russia-Ukraine war costs – – – (12) (12) 49 37Significant asset impairments and restructurings – – – 789 789 – 789(Gains) and losses on investments – – – – – 100 100Income tax effect/significant tax matters – – – – – – (1,515)Non-GAAP amount $ 26,074 $ 10,238 $ 36,312 $ 17,935 $ 18,377 $ 202 $ 15,150% of revenue 66.4% 70.4% 67.5% 33.3% 34.2% 0.4% 28.2%Amounts may not sum and percentages may not recalculate due to rounding.CISCO SYSTEMS, INC.RECONCILIATIONS OF GAAP TO NON-GAAP MEASURESEFFECTIVE TAX RATE(In percentages) Three Months Ended Fiscal Year Ended July 26, July 27, July 26, July 27, 2025 2024 2025 2024GAAP effective tax rate 15.8% 9.8% 8.7% 15.6%Total adjustments to GAAP provision for income taxes 2.3% 6.8% 9.7% 2.9%Non-GAAP effective tax rate 18.1% 16.6% 18.4% 18.5%GAAP TO NON-GAAP GUIDANCEQ1 FY 2026 Gross Margin Operating Margin Earnings per Share (1)GAAP 65% – 66% 21.5% – 22.5% $0.63 – $0.68Estimated adjustments for:Share-based compensation expense 1.0% 6.5% $0.18 – $0.19Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs 1.5% 4.0% $0.11 – $0.12Significant asset impairments and restructurings (2) – 1.0% $0.02 – $0.03Non-GAAP 67.5% – 68.5% 33% – 34% $0.97 – $0.99FY 2026 Earnings per Share (1)GAAP $2.79 – $2.91Estimated adjustments for:Share-based compensation expense $0.69 – $0.71Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs $0.43 – $0.45Significant asset impairments and restructurings (2) $0.03 – $0.05Non-GAAP $4.00 – $4.06(1) Estimated adjustments to GAAP earnings per share are shown after income tax effects.(2) Reflects charges related to a restructuring plan announced on August 14, 2024. We expect this plan to be substantially completed by the end of the second quarter of fiscal 2026.

Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.

Forward Looking Statements, Non-GAAP Information and Additional Information

This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as the massive opportunity ahead as we lead the required architectural shift and building the critical infrastructure needed for the AI era, and our focus on making strategic investments in innovation, driving durable, profitable growth and delivering shareholder value) and the future financial performance of Cisco (including the guidance for Q1 FY 2026 and full year FY 2026) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q1 FY 2026 and full year FY 2026. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market, cloud, enterprise and other customer markets; the return on our investments in certain key priority areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and services markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco's most recent reports on Forms 10-Q and 10-K filed on May 20, 2025 and September5, 2024, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco's results of operations for the three months and the year ended July26, 2025 are not necessarily indicative of Cisco's operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco's management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia-Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco's management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technologyleader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

Copyright © 2025 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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