Good morning. Cisco Programs, lengthy anchored in its networking {hardware} enterprise—promoting routers, switches, and different infrastructure merchandise—has repositioned itself to fulfill surging enterprise demand for AI infrastructure. Its new chief monetary officer, Mark Patterson, is now on the heart of that technique.
The San Jose–primarily based communications large (No. 83 on the Fortune 500) reported earnings on Wednesday for its fiscal fourth quarter and yr that ended on July 26. AI infrastructure orders from webscale clients reached greater than $800 million in This autumn, bringing fiscal 2025’s whole to over $2 billion—greater than double the $1 billion goal first set in This autumn fiscal 2024.
Quarterly income got here in at $14.7 billion, up 8% from a yr earlier and barely forward of the $14.62 billion analysts anticipated.
“In This autumn, income, gross margin and working margin had been on the excessive finish of our steering ranges, earnings per share was above the steering vary and we delivered stable working money circulation,” Patterson mentioned on Wednesday’s earnings name.
A 25-year Cisco veteran, Patterson grew to become EVP and CFO on July 27, succeeding Scott Herren, who held the function since December 2020 and retired this summer time. Herren is credited with serving to shift Cisco’s enterprise combine towards software program and recurring income.
In recent times, significantly since 2024, Cisco has made a strategic pivot to place itself because the networking spine for AI infrastructure. In 2024, it closed its $28 billion all-cash acquisition of Splunk, a cybersecurity and analytics agency that makes use of AI and machine studying, and rolled out Hypershield, an AI-native system that embeds safety into each software program element and utility working on networks, from servers to private and non-private clouds.
Over his lengthy profession at Cisco, Patterson has held management roles in finance, technique, and operations, in addition to greater than a decade in gross sales protecting each buyer phase and geography. Most not too long ago, he served as chief technique officer earlier than moving into the CFO place.
“As I look forward, we’ve got vital alternatives—whether or not in AI infrastructure for the webscale house, the nascent however rising enterprise AI market, or the buildout of neo-clouds and sovereign AI,” Patterson mentioned on Wednesday’s earnings name, his first as CFO.
Strengthening cybersecurity by Splunk, advancing campus modernization, sustaining disciplined financing, and guaranteeing sustainable progress and shareholder worth are additionally on his agenda.
“What I actually wish to do is make certain we’re funded for achievement,” he mentioned. “You possibly can anticipate that I’ll deal with sturdy, worthwhile progress.”
Sustaining momentum shall be key to technique as Cisco clients undertake agentic AI.
Leaderboard
Julie A. Beck was appointed SVP, CFO, and treasurer of MSA Security Integrated (NYSE: MSA), a supplier of superior security merchandise, efficient Aug. 18. Beck most not too long ago served as SVP and CFO for Terex Corp., a worldwide industrial tools producer. Earlier than that, she served as SVP and CFO for Nova Chemical compounds, Inc., a producer of petrochemicals. Beck has additionally served as world VP of provide chain, operational excellence and high quality for Pleasure World, Inc.
Priya Arora was appointed chief monetary and working officer of TravelNet Options (TNS), makers of Monitor Property Administration Software program. Most not too long ago, Arora was CFO and COO at Fulcrum Collaborations, and beforehand held senior finance roles at Supply Intelligence and Relativity, the place she helped lead a significant funding by Silver Lake. Arora started her profession at McKinsey & Firm and spent over a decade in M&A and finance on Wall Avenue.
Massive Deal
The 2025 BDO Tax Strategist Survey finds that, amid rising uncertainty and main tax coverage adjustments, tax leaders are enjoying an more and more pivotal function in guiding corporations by change.
Ninety p.c of tax leaders say they’re now invited to weigh in on choices earlier than they’re made, and their suggestions carry vital weight. In the meantime, adjustments to tariffs and Inflation Discount Act clear power subsidies rank as high challenges.
Nevertheless, not all tax capabilities have the mandatory assets to fulfill evolving expectations—expertise and expertise gaps stay for too many tax groups, based on BDO. Though 67% of organizations plan to extend funding in tax applied sciences, hurdles stay relating to implementation, knowledge high quality and administration, and abilities gaps.
The findings are primarily based on a survey of 300 senior tax leaders at corporations with revenues starting from $250million to $3billion, carried out in Could 2025.
Going deeper
From the report: “After 133 years, a chapter, and a number of reinventions, Kodak’s newest snapshot is grim: The corporate says there’s ‘substantial doubt’ it could actually keep in enterprise. In a quarterly submitting launched Monday alongside its second-quarter earnings report, Kodak’s administration raised severe issues about its potential to proceed working over the subsequent yr. The warning stems from roughly $500 million in debt maturing inside 12 months and the shortage of dedicated financing to cowl these obligations. With out new funding or profitable refinancing, the corporate might default, they mentioned.”
Overheard
“Having a very good quality mattress permits them to sleep higher, which is so vital for well being and having the ability to have a optimistic mindset and the energy to do the very arduous issues they have to do.”
—Accenture CEO Julie Candy instructed Fortune. Candy has centered a few of her philanthropy on the nonprofit FurnishHopeDC, a neighborhood group that gives beds and bedding to households in want within the D.C. space.
