He was again Cardiff's highest goalscorer the following year, netting 20 times despite suffering several injury problems that restricted him to 30 league appearances. However, his injury issues cost him a place in the squad for 1925 FA Cup final with Joe Nicholson starting in his place. His side went on to suffer defeat against Sheffield United. The signing of Hughie Ferguson in 1925 led to Davies being moved to an inside forward role and his scoring record fell as a result. He scored eight times during the 1925–26 season and seven the following year. In 1927, he was part of the Cardiff side that beat Arsenal to win the FA Cup Final, becoming the only side from outside England to have won the competition. The only goal of the game came as the opposition goalkeeper was unable to control a shot from Hughie Ferguson as Davies advanced on him. Two weeks after the final, Davies scored the opening goal in Cardiff's 2–0 win over Rhyl in the Welsh Cup final.