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Cisco Systems is approaching its Q3 2025 earnings release, riding a wave of strong demand for its networking and AI‑infrastructure solutions. With product orders up and major web‑scale customers signing on, the company enters the quarter with positive momentum — yet cost pressures and macro risks (like tariffs) remain in the background.
• Q3 revenue of US$14.1 billion, up ~11% year‑on‑year.
• GAAP EPS: ~US$0.62 per share; Non‑GAAP EPS: ~US$0.96 per share.
• Product orders grew ~20% YoY (9% growth excluding the Splunk Inc. acquisition).
Cisco shares are currently trading in the US$60–65 range, reflecting moderate upside potential given their solid beat history. The market expects ~10–11% revenue growth and EPS near US$0.92 before results. The key will be whether Cisco can leverage its AI‑infrastructure momentum into sustained higher margins, while navigating tariff and supply‑chain headwinds.
1.AI & Infrastructure Demand — Cisco’s AI‑infrastructure orders have already exceeded US$600 million for the year, signaling strong enterprise interest.
2. Security & Software Growth — The company’s acquisition of Splunk boosts its security and observability segment, which is becoming a greater driver of growth.
3. Margin Pressure and Tariffs — While revenue is growing, margins face pressure from tariffs and global supply‑chain factors; investors will watch guidance closely.
4. Recurring Revenue Strength — With software and subscription revenue gaining share, the shift toward recurring business models is critical for long‑term valuation.
5. Capital Returns & Guidance — Cisco’s return of capital via dividends and buybacks remains strong, but forward guidance will influence investor sentiment amid broader tech pressure.
Trend: Cautiously positive with strong structural tailwinds in AI/infra
Resistance: ~US$70
Support: ~US$55–57
Forecast: A confirmed beat plus upgraded guidance could push the stock toward ~$70+, whereas weak guidance or margin concerns may test support nearer ~$55.
Sentiment is moderately bullish. Analysts highlight Cisco’s leadership in networking for the AI era, but some caution that competitive risks and macro headwinds (tariffs, supply) may temper upside.
Cisco’s Q3 earnings will be more than just another quarter — they’ll test whether the company is successfully capitalising on the AI infrastructure boom and shifting from traditional networking into faster‑growing segments. For investors, the focus isn’t just on growth, but on sustainable margin expansion and credible guidance into FY2026.
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