Here's What Key Metrics Tell Us About Cisco (CSCO) Q3 Earnings

For the quarter ended April 2025, Cisco Systems (CSCO) reported revenue of $14.15 billion, up 11.4% over the same period last year. EPS came in at $0.96, compared to $0.88 in the year-ago quarter.

The reported revenue represents a surprise of +0.65% over the Zacks Consensus Estimate of $14.06 billion. With the consensus EPS estimate being $0.91, the EPS surprise was +5.49%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Revenue- Product: $10.37 billion versus the six-analyst average estimate of $10.08 billion. The reported number represents a year-over-year change of +15%.
• Revenue- Services: $3.78 billion compared to the $3.82 billion average estimate based on six analysts. The reported number represents a change of +2.6% year over year.
• Revenue- Product- Security: $2.01 billion versus $2.21 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +54.4% change.
• Revenue- Product- Observability: $261 million compared to the $276.09 million average estimate based on five analysts.
• Revenue- Product- Networking: $7.07 billion versus $6.76 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.4% change.
• Revenue- Product- Collaboration: $1.03 billion versus the five-analyst average estimate of $1 billion. The reported number represents a year-over-year change of +4.5%.
• Non-Gaap Gross Margin- Service: $2.69 billion versus $2.72 billion estimated by five analysts on average.
• Non-Gaap Gross Margin- Product: $7.01 billion versus $6.66 billion estimated by five analysts on average.

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This article originally published on Zacks Investment Research (zacks.com).

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