Cisco Systems, Inc. stock research
FY2025 Q4
Cisco Systems (CSCO) Gross Margin — Quarter Ended Jul 26, 2025
Revenue rose versus the prior quarter and the same quarter a year ago, while gross profit was flat sequentially and higher year over year. Gross margin weakened from both the immediate preceding quarter and the year-ago quarter due to cost of revenue growing faster than revenue.
Gross margin takeaway
Quarter ended Jul 26, 2025 · FY2025 Q4
Revenue rose versus the prior quarter and the same quarter a year ago, while gross profit was flat sequentially and higher year over year. Gross margin weakened from both the immediate preceding quarter and the year-ago quarter due to cost of revenue growing faster than revenue.
- The primary margin headwind was a larger increase in cost of revenue relative to the sequential revenue gain. Compared with the year-ago quarter, cost of revenue rose while revenue also increased, resulting in a narrower margin.
- Sequentially, gross margin declined as cost of revenue increased more than revenue, with gross profit unchanged. Year over year, gross margin was lower as cost of revenue increased at a faster pace than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.2%
Gross profit
$9.3B
Revenue
$14.7B
Cost of revenue
$5.4B
Quarter-over-quarter change
-2.3 pts
Year-over-year change
-1.1 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 |
|---|---|---|---|---|
| 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% |
| Jul 26, 2025 | $14.7B | $9.3B | $5.4B | 63.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 26, 2025
-2.3 pts
Year-over-year change
Jul 27, 2024
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary margin headwind was a larger increase in cost of revenue relative to the sequential revenue gain. Compared with the year-ago quarter, cost of revenue rose while revenue also increased, resulting in a narrower margin.
Sequentially, gross margin declined as cost of revenue increased more than revenue, with gross profit unchanged. Year over year, gross margin was lower as cost of revenue increased at a faster pace than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion expanded in the current quarter.