Cisco CEO Chuck Robbins speaking on CNBC's "Squawk Box" outside the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.Cisco shares climbed about 6% in extended trading on Wednesday after the networking hardware maker reported fiscal second-quarter results and guidance that topped Wall Street's expectations.Here's how the company did against LSEG consensus:Earnings per share: 94 cents adjusted vs. 91 cents expectedRevenue: $13.99 billion vs. $13.87 billion expectedRevenue increased 9% in the quart ...

Financial Performance - Q2 FY 2025 revenue was $14.0 billion, a 9% increase year over year, exceeding guidance[6] - GAAP net income was $2.4 billion, down 8% year over year, with GAAP EPS at $0.61, a decrease of 6%[17] - Non-GAAP net income increased by 6% to $3.8 billion, with non-GAAP EPS rising 8% to $0.94[10] - Total revenue for the three months ended January 25, 2025, was $13,991 million, representing a 9% year-over-year increase[31] - For the first half of FY 2025, GAAP net income was $5.139 billion, down 18% from $6.272 billion in the first half of FY 2024[57] - Non-GAAP net income for the first half of FY 2025 was $7.431 billion, reflecting an 8% decrease from $8.066 billion in the first half of FY 2024[57] - The company expects Q3 FY 2025 Non-GAAP EPS guidance to be between $0.90 and $0.92, with GAAP EPS expected between $0.57 and $0.61[62] Revenue Growth - Product orders grew by 29% year over year, with AI Infrastructure orders exceeding $350 million in Q2[6] - Revenue from Security products surged 117% and Observability grew 47% year over year[14] - Security revenue surged by 117% year-over-year to $2,111 million for the three months ended January 25, 2025[35] Operating Metrics - Operating income on a GAAP basis was $3.1 billion, with a GAAP operating margin of 22.3%[16] - Cash flow from operating activities reached $2.2 billion, a 177% increase compared to the same quarter last year[18] - Total revenue for Q2 FY 2025 was $9.111 billion, with a gross margin of 65.1%, compared to $8.217 billion and a gross margin of 64.2% in Q2 FY 2024[54] - Operating income for Q2 FY 2025 was $3.113 billion, reflecting a year-over-year increase of 1%[54] - Non-GAAP gross margin for the first half of FY 2025 was 69.0%, compared to 66.9% in the first half of FY 2024[57] Cash and Assets - Total assets decreased from $124,413 million on July 27, 2024, to $121,375 million on January 25, 2025[38] - Net cash provided by operating activities for the six months ended January 25, 2025, was $5,902 million, compared to $3,179 million for the same period in 2024[40] - Cash, cash equivalents, and restricted cash at the end of the period were $9,508 million, up from $8,842 million at the beginning of the period[40] Performance Obligations - Remaining Performance Obligations (RPO) totaled $41.3 billion, up 16%, with 51% expected to be recognized as revenue in the next 12 months[19] - Remaining performance obligations (RPO) increased by 16% year-over-year to $41,268 million as of January 25, 2025[42] - The company expects to recognize 51% of total RPO as revenue over the next 12 months[42] - Total deferred revenue as of January 25, 2025, was $27,795 million, up from $25,771 million a year earlier[44] Acquisitions and Investments - Cisco closed the acquisition of Deeper Insights AI Ltd., enhancing its AI capabilities[22] - The quarterly dividend was increased by 3% to $0.41 per share, with an additional $15 billion authorized for stock repurchases[11] Tax and Expenses - The effective tax rate for Q2 FY 2025 was 15.9%, slightly down from 16.7% in Q2 FY 2024[60] - Share-based compensation expense for Q2 FY 2025 was $151 million, up from $139 million in Q2 FY 2024[54] - The company reported a significant increase in acquisition-related costs, totaling $17 million in Q2 FY 2025 compared to $1 million in Q2 FY 2024[54] Strategic Focus and Risks - Cisco is providing guidance for Q3 FY 2025 and full year FY 2025, indicating potential risks and uncertainties in customer demand and financial performance[65] - The company emphasizes the importance of non-GAAP measures, which exclude share-based compensation and other costs, to evaluate its financial results[66] - Cisco's management uses non-GAAP measures for internal budgeting, which may exclude significant litigation settlements and costs related to the Russia-Ukraine war[70] - The company is focused on leveraging AI-powered solutions to enhance productivity and strengthen digital resilience for its customers[71] - Cisco acknowledges the limitations of non-GAAP measures, which may not reflect all amounts associated with its results of operations[67] - The company is subject to various risks, including supply constraints and increased competition in the data center market[65] - Cisco's future performance may be influenced by global economic conditions and geopolitical uncertainties[65] - The company aims to maintain leadership in networking and services while managing financial risks during economic downturns[65]

Cisco Systems Inc CSCO will be reporting its second-quarter earnings on Wednesday. Wall Street expects 91 cents in EPS and $13.87 billion in revenues as the company reports after market hours.The stock is up 24.88% over the past year, 5.63% year-to-date.Cisco Positioning Itself At The Heart Of AI ActionCisco is gearing up for its earnings report with a wave of AI-driven innovations that could give its stock a turbocharged jolt. The tech giant recently launched its new smart switches featuring intelligent ne ...

Cisco Systems, Inc. CSCO will release its second-quarter financial results after the closing bell, on Wednesday, Feb. 12, 2025.Analysts expect the California-based company to report quarterly earnings at 91 cents per share, up from 87 cents per share in the year-ago period. Cisco projects quarterly revenue of $13.87 billion, compared to $12.79 billion a year earlier, according to data from Benzinga Pro.On Feb. 10, the company introduced an AI solution in collaboration with Mistral AI, signaling a major adva ...

Among the tech sector, one stock investors may want to pay attention to this week is Cisco Systems (CSCO) , which is set to report its fiscal second-quarter results after market hours on Wednesday, February 12.While Cisco Systems may often be overlooked for some of the heavy hitters in Silicon Valley, the company’s products and services are critical to computer network security. From preventing unauthorized access to system resources, to blocking malware and viruses, Cisco Systems has a vital role in suppor ...

Brian Gilmartin, is a portfolio manager at Trinity Asset Management, a firm he founded in May, 1995, catering to individual investors and institutions that werent getting the attention and service deserved, from larger firms. Brian started in the business as a fixed-income / credit analyst, with a Chicago broker-dealer, and then worked at Stein Roe & Farnham in Chicago, from 1992 - 1995, before striking out on his own and managing equity and balanced accounts for clients. Brian has a BSBA (Finance) from Xav ...

News Summary:  Cisco Agile Services Networking architecture provides the blueprint for service providers as they look to enable AI connectivity and monetize assured services. Cisco is committed to helping service providers make their networks simpler, more resilient, and intelligent with new Silicon One-powered platforms, coherent pluggable optics and software enhancements. The delivery of AI-enabled applications and experiences relies on service providers, and Cisco is helping them evolve their networks fo ...

New switches with embedded AMD Pensando DPUs are highly adaptive and scalable for AI demands—enabling enterprises to add services as needs evolve News Summary Cisco announces the Cisco N9300 Series Smart Switches with a new class of intelligent networking silicon alongside embedded DPUs, reimagining AI data center designs. Cisco Hypershield will be offered as the first service available embedded on the new switches; narrowing the gap between security and networking layers by converging them into a single s ...

Cisco Systems (CSCO) is set to release its second-quarter fiscal 2025 results on Feb. 12.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company anticipates second-quarter fiscal 2025 revenues between $13.75 billion and $13.95 billion. Non-GAAP earnings are expected between 89 and 91 cents per share. The Zacks Consensus Estimate for revenues is pegged at $13.86 billion, indicating growth of 8.36% from the year-ago quarter’s reported figure. The consensus mark for earnings has been ...

Jyoti Bansal knows about weird acquisitions.Eight years ago, his software company, AppDynamics, was on the doorstep of a blockbuster IPO. A day before the offering, Cisco swooped in and bought the company for $2.7 billionNow Bansal is at the center of an equally unconventional combination.Since 2020, Bansal has been running two startups as co-founder and CEO: Harness and Traceable. The former's technology helps companies manage code and the latter's software observes where companies are unintentionally lett ...