Cisco’s security business grew 59.5% year-on-year in fiscal 2025, jumping from $5.075 billion to $8.094 billion and becoming the fastest-growing segment in the company’s portfolio after the $28 billion Splunk acquisition closed in March 2024. Total revenue reached $56.654 billion in fiscal 2025, recovering 5.3% from the prior year’s decline, while R&D spending climbed 16.5% to a record $9.300 billion.
Key Cisco Statistics for 2026
- Cisco reported total revenue of $56.654 billion in fiscal 2025, up 5.3% from $53.803 billion in fiscal 2024.
- The security segment grew 59.5% year-on-year to $8.094 billion in fiscal 2025, the largest dollar increase of any product segment in Cisco’s history.
- R&D spending reached $9.300 billion in fiscal 2025, representing 16.4% of total revenue.
- Networking revenue declined 3.2% to $28.304 billion, falling to exactly 50.0% of total revenue compared to 60.7% in fiscal 2023.
- Gross margin expanded to 65.0% in fiscal 2025, up from 62.7% two years earlier.
How Much Revenue Does Cisco Generate?
Cisco’s fiscal 2025 ended July 26, 2025, with total revenue of $56.654 billion. Product revenue contributed $41.608 billion and services brought in $15.046 billion. The 5.3% recovery follows a 5.6% decline in fiscal 2024 when post-pandemic networking hardware demand normalized.
Services now account for 26.6% of total revenue, up from 24.3% in fiscal 2023, as Cisco shifts toward subscription and recurring revenue models.
| Metric | FY2023 | FY2024 | FY2025 | YoY Change |
|---|---|---|---|---|
| Total revenue | $56,998M | $53,803M | $56,654M | +5.3% |
| Product revenue | $43,142M | $39,253M | $41,608M | +6.0% |
| Services revenue | $13,856M | $14,550M | $15,046M | +3.4% |
| Gross profit | $35,753M | $34,828M | $36,790M | +5.6% |
| Gross margin | 62.7% | 64.7% | 65.0% | +0.3pp |
Source: Cisco Systems, Inc. Annual Report FY2025
Cisco Statistics by Product Segment
Networking remains Cisco’s largest product line at $28.304 billion, but its share dropped to 50.0% of total revenue in fiscal 2025. Security claimed second place at $8.094 billion after a $3.019 billion single-year increase, the largest dollar jump for any segment in Cisco’s history.
Observability grew 26.0% to $1.055 billion, while collaboration stayed flat at $4.154 billion. The data confirms a structural shift away from hardware-centric networking.
| Segment | FY2023 | FY2024 | FY2025 | YoY Change |
|---|---|---|---|---|
| Networking | $34,570M | $29,229M | $28,304M | -3.2% |
| Security | $3,859M | $5,075M | $8,094M | +59.5% |
| Collaboration | $4,052M | $4,113M | $4,154M | +1.0% |
| Observability | $661M | $837M | $1,055M | +26.0% |
Source: Cisco Systems, Inc. Annual Report FY2025
Why Did Cisco Security Revenue Grow 59.5%?
The security segment doubled over two years, climbing from $3.859 billion in fiscal 2023 to $8.094 billion in fiscal 2025, a 109.7% increase. The fiscal 2025 jump reflects Splunk’s full-year contribution after the March 2024 acquisition closed, combined with organic growth in Cisco’s existing security portfolio.
Cisco Statistics by Geographic Region
The Americas generated $33.656 billion in fiscal 2025, accounting for 59.4% of Cisco’s total revenue. EMEA contributed $14.824 billion or 26.2%, and APJC delivered $8.174 billion or 14.4%. All three regions declined in fiscal 2024 and recovered in fiscal 2025.
EMEA services revenue grew 6.6%, faster than any other regional services line, signaling stronger European adoption of subscription-based enterprise technology.
| Region | FY2024 | FY2025 | FY2025 Share | YoY Change |
|---|---|---|---|---|
| Americas | $31,971M | $33,656M | 59.4% | +5.3% |
| EMEA | $14,117M | $14,824M | 26.2% | +5.0% |
| APJC | $7,716M | $8,174M | 14.4% | +5.9% |
Source: Cisco Systems, Inc. Annual Report FY2025
Which APJC Countries Grew Fastest?
APJC product revenue grew 7.0% in fiscal 2025. Australia, India, and China each posted 10% or higher growth in product revenue, while Japan grew 7%. The breadth of country-level expansion shows the regional recovery wasn’t dependent on any single market.
Cisco Statistics on R&D and Innovation Spending
R&D spending hit $9.300 billion in fiscal 2025, a 16.5% jump from $7.983 billion the previous year. R&D as a share of revenue reached 16.4%, exceeding the 10–12% range typical for enterprise networking companies and approaching software-firm intensity.
Three-year R&D growth totals $1.749 billion or 23.2%, reflecting Cisco’s pivot toward AI-native networking and security.
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| R&D expenditure | $7,551M | $7,983M | $9,300M |
| R&D YoY growth | — | +5.7% | +16.5% |
| R&D as % of revenue | 13.2% | 14.8% | 16.4% |
| Services gross margin | 66.4% | 68.1% | 68.5% |
| Product gross margin | — | 63.5% | 63.7% |
Source: Cisco Systems, Inc. Annual Report FY2025
Cisco Statistics on Workforce and Productivity
Cisco employed 25,600 people as of July 2025, down sharply from approximately 84,900 in 2024 before Splunk integration and the FY2024–FY2025 workforce reduction program. The smaller workforce produced $36.790 billion in gross profit, equating to $1.437 million in gross profit per employee.
The headcount reduction follows tech sector restructuring trends and reflects Cisco’s push toward higher productivity per employee through software and services.
Cisco Statistics: Margin Expansion Trends
Gross margin reached 65.0% in fiscal 2025, up 2.3 percentage points from 62.7% in fiscal 2023. Services gross margin climbed to 68.5%, sitting 4.8 points above the 63.7% product gross margin.
The margin gap explains why Cisco continues prioritizing recurring services and software revenue. Each percentage point of revenue mix shift toward services expands blended margins.
FAQs
What was Cisco’s total revenue in fiscal 2025?
Cisco reported total revenue of $56.654 billion in fiscal 2025, which ended July 26, 2025. This represents a 5.3% increase from the $53.803 billion recorded in fiscal 2024.
How fast is Cisco’s security segment growing?
Cisco’s security segment grew 59.5% year-on-year in fiscal 2025, reaching $8.094 billion compared to $5.075 billion in fiscal 2024. The growth largely reflects the Splunk acquisition’s full-year contribution.
How much does Cisco spend on R&D?
Cisco spent $9.300 billion on research and development in fiscal 2025, a 16.5% increase from the prior year. R&D now accounts for 16.4% of total revenue, the highest intensity in recent company history.
How many employees does Cisco have?
Cisco employed 25,600 people as of July 2025, down from roughly 84,900 in 2024. The reduction followed Splunk integration and the FY2024–FY2025 workforce restructuring program.
What share of Cisco revenue comes from the Americas?
The Americas generated $33.656 billion in fiscal 2025, accounting for 59.4% of total revenue. EMEA contributed 26.2% and APJC delivered 14.4%, making Cisco heavily dependent on US enterprise spending.
With many years of professional experience within transnational corporations in different industries, Richard Jaimes has had the opportunity to lead people and organizations, investigate future topics, create strategies and innovations, consult senior management and translate insights into business advantages. Richard is also a long time senior consultant with Quantumrun Foresight.
