Cisco Systems, Inc. stock research
FY2025 Q3
Cisco Systems (CSCO) Gross Margin — Quarter Ended Apr 26, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year ago, while cost of revenue remained flat relative to the prior quarter and was higher than the year-ago period. As a result, gross margin improved from the prior quarter and was also higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Apr 26, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year ago, while cost of revenue remained flat relative to the prior quarter and was higher than the year-ago period. As a result, gross margin improved from the prior quarter and was also higher than the year-ago quarter.
- The gross margin improvement was driven by revenue growth that outpaced the change in cost of revenue. Compared to the prior quarter, revenue increased while cost of revenue remained unchanged, leading to a higher gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved. Compared to the same quarter a year ago, revenue, gross profit, and cost of revenue were all higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.6%
Gross profit
$9.3B
Revenue
$14.1B
Cost of revenue
$4.9B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 27, 2024 | $13.6B | $8.8B | $4.9B | 64.4% |
| Oct 26, 2024 | $13.8B | $9.1B | $4.7B | 65.9% |
| Jan 25, 2025 | $14.0B | $9.1B | $4.9B | 65.1% |
| Apr 26, 2025 | $14.1B | $9.3B | $4.9B | 65.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 25, 2025
+0.5 pts
Year-over-year change
Apr 27, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growth that outpaced the change in cost of revenue. Compared to the prior quarter, revenue increased while cost of revenue remained unchanged, leading to a higher gross margin.
Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved. Compared to the same quarter a year ago, revenue, gross profit, and cost of revenue were all higher, and gross margin was also higher.
Monitor remaining performance obligations, which were slightly higher than at the end of the prior fiscal year, as they represent contracted future revenue.