Cisco Systems reported its Q1 2025 earnings, surpassing analysts' expectations with a revenue of $13.84 billion compared to the estimated $13.77 billion, and an adjusted EPS of $0.91 against the expected $0.87. Despite these positive results, the revenue marked a 5.6% decline year-over-year, and the adjusted EPS was down 18% year-over-year. The company provided a conservative annual forecast, projecting FY25 revenue between $55.3 billion and $56.3 billion, slightly below the estimated $55.88 billion, and a non-GAAP EPS range of $3.60 to $3.66, compared to the estimated $3.57. Cisco's AI investments and new acquisitions have not yet fully offset the declines in its top and bottom lines. The company expects its new AI server to begin shipping in December, with the majority of AI-related revenue anticipated in the second half of the fiscal year. Cisco's CEO Chuck Robbins predicted over $1 billion in AI infrastructure orders for FY25. Despite the earnings beat, Cisco's stock saw a muted reaction, declining 0.8% after-hours.