Cisco Systems, Inc.

Subscription revenue was 56% of total in fiscal 2025 and ARR reached $30.1B, with product ARR up 41%. Multi-year enterprise agreements, service attach, and software subscriptions give Cisco substantially better forward visibility than a decade ago.

Four reported segments — Networking, Security, Collaboration, and Observability — span switching, routing, wireless, SASE, identity, XDR, and Splunk observability. Networking remains the largest driver, but Splunk and AI infrastructure have broadened exposure beyond campus refresh.

Americas contributed 58.6% of Q2 FY2025 revenue, EMEA 27.6%, and APJC 13.8%. International revenue of roughly 41% is meaningful, with no single country outside the US approaching the dominance threshold.

The subscription and software pivot has improved operating leverage, with software revenue of $18.4B in fiscal 2024, 89% of which was subscription. Hardware SKUs still require silicon design, manufacturing, and channel economics that cap full software-like scaling.

Enterprise networking, identity, and observability are mission-critical systems that are not easily deferred, and 56% of revenue is contractual subscription. Splunk adds particularly sticky security and operations telemetry that customers rarely rip out mid-contract.