Good morning. Cisco Systems, long anchored in its networking hardware business—selling routers, switches, and other infrastructure products—has repositioned itself to meet surging enterprise demand for AI infrastructure. Its new chief financial officer, Mark Patterson, is now at the center of that strategy.
The San Jose–based communications giant (No. 83 on the Fortune 500) reported earnings on Wednesday for its fiscal fourth quarter and year that ended on July 26. AI infrastructure orders from webscale customers reached more than $800 million in Q4, bringing fiscal 2025’s total to over $2 billion—more than double the $1 billion target first set in Q4 fiscal 2024.
Quarterly revenue came in at $14.7 billion, up 8% from a year earlier and slightly ahead of the $14.62 billion analysts expected.
“In Q4, revenue, gross margin and operating margin were at the high end of our guidance ranges, earnings per share was above the guidance range, and we delivered solid operating cash flow,” Patterson said on Wednesday’s earnings call.
A 25-year Cisco veteran, Patterson became EVP and CFO on July 27, succeeding Scott Herren, who held the role since December 2020 and retired this summer. Herren is credited with helping shift Cisco’s business mix toward software and recurring revenue.
In recent years, particularly since 2024, Cisco has made a strategic pivot to position itself as the networking backbone for AI infrastructure. In 2024, it closed its $28 billion all-cash acquisition of Splunk, a cybersecurity and analytics firm that uses AI and machine learning, and rolled out Hypershield, an AI-native system that embeds security into every software component and application running on networks, from servers to public and private clouds.
Over his long career at Cisco, Patterson has held leadership roles in finance, strategy, and operations, as well as more than a decade in sales covering every customer segment and geography. Most recently, he served as chief strategy officer before stepping into the CFO position.
“As I look ahead, we have significant opportunities—whether in AI infrastructure for the webscale space, the nascent but growing enterprise AI market, or the buildout of neo-clouds and sovereign AI,” Patterson said on Wednesday’s earnings call, his first as CFO.
Strengthening cybersecurity through Splunk, advancing campus modernization, maintaining disciplined financing, and ensuring sustainable growth and shareholder value are also on his agenda.
“What I really want to do is make sure we’re funded for success,” he said. “You can expect that I will focus on durable, profitable growth.”
Maintaining momentum will be key to strategy as Cisco customers adopt agentic AI.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Julie A. Beck was appointed SVP, CFO, and treasurer of MSA Safety Incorporated (NYSE: MSA), a provider of advanced safety products, effective Aug. 18. Beck most recently served as SVP and CFO for Terex Corp., a global industrial equipment manufacturer. Before that, she served as SVP and CFO for Nova Chemicals, Inc., a producer of petrochemicals. Beck has also served as global VP of supply chain, operational excellence and quality for Joy Global, Inc.
Priya Arora was appointed chief financial and operating officer of TravelNet Solutions (TNS), makers of Track Property Management Software. Most recently, Arora was CFO and COO at Fulcrum Collaborations, and previously held senior finance roles at Source Intelligence and Relativity, where she helped lead a major investment by Silver Lake. Arora began her career at McKinsey & Company and spent over a decade in M&A and finance on Wall Street.
Big Deal
The 2025 BDO Tax Strategist Survey finds that, amid rising uncertainty and major tax policy changes, tax leaders are playing an increasingly pivotal role in guiding companies through change.
Ninety percent of tax leaders say they are now invited to weigh in on decisions before they are made, and their recommendations carry significant weight. Meanwhile, changes to tariffs and Inflation Reduction Act clean energy subsidies rank as top challenges.
However, not all tax functions have the necessary resources to meet evolving expectations—technology and talent gaps remain for too many tax teams, according to BDO. Although 67% of organizations plan to increase investment in tax technologies, hurdles remain regarding implementation, data quality and management, and skills gaps.
The findings are based on a survey of 300 senior tax leaders at companies with revenues ranging from $250 million to $3 billion, conducted in May 2025.
Going deeper
From the report: "After 133 years, a bankruptcy, and multiple reinventions, Kodak’s latest snapshot is grim: The company says there’s 'substantial doubt' it can stay in business. In a quarterly filing released Monday alongside its second-quarter earnings report, Kodak’s management raised serious concerns about its ability to continue operating over the next year. The warning stems from roughly $500 million in debt maturing within 12 months and the lack of committed financing to cover those obligations. Without new funding or successful refinancing, the company could default, they said."
Overheard
“Having a good quality bed allows them to sleep better, which is so important for health and being able to have a positive mindset and the strength to do the very hard things they must do.”
—Accenture CEO Julie Sweet told Fortune. Sweet has focused some of her philanthropy on the nonprofit FurnishHopeDC, a community organization that provides beds and bedding to families in need in the D.C. area.
