Have you evaluated the performance of Cisco Systems' (CSCO Quick QuoteCSCO - Free Report) international operations for the quarter ending July 2025? Given the extensive global presence of this seller of routers, switches, software and services, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Our review of CSCO's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

For the quarter, the company's total revenue amounted to $14.67 billion, experiencing an increase of 7.6% year over year. Next, we'll explore the breakdown of CSCO's international revenue to understand the importance of its overseas business operations.

Trends in CSCO's Revenue from International Markets

EMEA generated $3.65 billion in revenues for the company in the last quarter, constituting 24.8% of the total. This represented a surprise of -4.86% compared to the $3.83 billion projected by Wall Street analysts. Comparatively, in the previous quarter, EMEA accounted for $3.74 billion (26.4%), and in the year-ago quarter, it contributed $3.51 billion (25.7%) to the total revenue.

During the quarter, APJC contributed $2.21 billion in revenue, making up 15% of the total revenue. When compared to the consensus estimate of $2.1 billion, this meant a surprise of +5.27%. Looking back, APJC contributed $2.03 billion, or 14.4%, in the previous quarter, and $2.06 billion, or 15.1%, in the same quarter of the previous year.

Revenue Projections for Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Cisco will post revenues of $14.75 billion, which reflects an increase of 6.6% the same quarter in the previous year. The revenue contributions are expected to be 26% from EMEA ($3.83 billion), and 14% from APJC ($2.06 billion).

For the full year, a total revenue of $59.58 billion is expected for the company, reflecting an increase of 5.2% from the year before. The revenues from EMEA and APJC are expected to make up 26.2%, and 14.1% of this total, corresponding to $15.61 billion, and $8.39 billion, respectively.

Wrapping Up

Cisco's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

At the moment, Cisco has a Zacks Rank #2 (Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Cisco Systems' Recent Stock Market Performance

Over the past month, the stock has seen a decline of 2.7% in its value, whereas the Zacks S&P 500 composite has posted an increase of 3.5%. The Zacks Computer and Technology sector, Cisco's industry group, has ascended 4.9% over the identical span. In the past three months, there's been an increase of 4.9% in the company's stock price, against a rise of 9.3% in the S&P 500 index. The broader sector has increased by 15.8% during this interval.