CLAIM #17852 · Cisco Systems Inc (CSCO) · 2025Q4 earnings call · Aug 13, 2025

“So we do expect that, that will improve as we go into FY '26.”

Mark Patterson · CFO

How to check this claim

Look at: Services revenue growth rate (year-over-year), as reported

It came true if: FY26 services revenue growth rate higher than FY25 services revenue growth rate

Where: Company income statement / segment disclosures (10-K or quarterly earnings release)

Knowable after: 2026-11-30

In context

“l take the service one and then I'll let Chuck answer your second question. So on the services, if you go back a year ago and even a little bit longer ago, you saw a lot of professional services that we did, really helping our customers and our partners, frankly, working hand-in-hand to implement a lot of that gear that we had shipped. If you remember, all that excess backlog that we sort of unloaded on our customers, if you will, we were helping do that. So that drove nice growth in our services business for a while. What we usually do see, as you know, as services usually trails or sort of follows on to what's happening in product, for instance. So as we saw networking growth of 12% this quarter, I would expect that you'll start to see services pick up as revenue on services is ratable. So we do expect that, that will improve as we go into FY '26. Charles H. Robbins: And then on the risk issue, all I could say, Tal, is that we see the same CapEx year-over-year growth numbers that you see. And I think the aggregate number is like 50% up. So I don't feel like AI is a fleeting trend. I do understand your question, but I think we're operating off the demand signals we're getting from those customers and what they're signaling relative to how they're spending CapEx. Ahmed Sami Badri: Thank you, Tal. Michelle, we can move to the next analyst. Operator: Ben Reitzes with Melius Research. Benjamin Alexander Reitzes: Chuck, I mean, I think some folks were trying to get at this in an earlier question. But security, I mean your execution in switching and the AI stuff is obviously better than expected, but the security was pretty well below the”

Verify independently

SEC filings for CSCO ↗ · Quote is verbatim from the 2025Q4 earnings call.