Cisco Systems Inc (4333.HK) Q2 2025 Earnings Report

Cisco reported a solid Q2 2025 performance with revenue of USD 13.991 billion, up 10.15% year-over-year and 1.08% quarter-over-quarter. The company delivered a gross margin of 65.12% and an operating margin of 22.25%, with net income of USD 2.428 billion and earnings per share of USD 0.61. EBITDA stood at USD 4.052 billion, underscoring a healthy profitability profile, while operating cash flow reached USD 2.241 billion and free cash flow USD 2.031 billion, supporting a strong capital-return cadence despite a sizable spend profile.\n\nFrom a balance sheet perspective, Cisco maintains substantial liquidity with USD 16.853 billion in cash and short-term investments and a total debt position of USD 32.422 billion, yielding a net debt of USD 23.866 billion. Although the current ratio is modest at 0.867 and deferred revenue is elevated (current USD 15.999 billion; non-current USD 11.796 billion), the company generated durable cash flow that funds ongoing buybacks and dividends. With a dividend yield of 0.64% and a price-to-earnings multiple around 25.5x, the stock reflects a mature hardware/software combination company trading at a premium to traditional hardware peers, supported by a relatively robust software/services trajectory. The Q2 results reinforce Cisco’s ability to monetize its installed base while emphasizing software and services expansion to support longer-term growth and cash generation.