Core Viewpoint - The performance of Cisco Systems' international operations is critical for understanding its financial resilience and growth potential, especially in the context of its total revenue decline in the recent quarter [1][4]. Group 1: International Revenue Performance - Cisco's total revenue for the quarter was $13.84 billion, a decrease of 5.6% from the same quarter last year [4]. - EMEA generated $3.59 billion, accounting for 25.92% of total revenue, which was a slight miss of -0.63% compared to analyst expectations [5]. - APJC contributed $2 billion, representing 14.46% of total revenue, exceeding expectations by +1.51% [6]. Group 2: Revenue Forecasts - Analysts anticipate Cisco will report total revenue of $13.86 billion for the current fiscal quarter, reflecting an increase of 8.4% year-over-year [7]. - For the full year, total revenue is expected to reach $56.03 billion, an increase of 4.2% from the previous year [8]. - EMEA and APJC are projected to contribute 26.1% and 14.4% of total revenue, translating to $14.59 billion and $8.05 billion respectively [8]. Group 3: Market Context and Trends - The reliance on global markets presents both opportunities and challenges for Cisco, making the analysis of international revenue trends essential for forecasting future performance [9]. - Wall Street analysts are closely monitoring these trends, particularly in light of increasing global interconnections and geopolitical tensions [10].

Core Insights - Cisco Systems Inc reported a marginal revenue decline of 6% year-over-year in Q1 FY 2024, with total revenue at $13.8 billion, yet the stock has increased by 17% year-to-date [1] - The company has raised its full-year revenue forecast to between $55.3 billion and $56.3 billion, reflecting expectations of stabilization and growth in AI and security tools [2] - Cisco's stock performance has been volatile over the past three years, with annual returns of 46% in 2021, -22% in 2022, and 9% in 2023, contrasting with the more stable Trefis High Quality Portfolio [3] Financial Performance - Cisco's Q1 earnings per share (EPS) were reported at $0.68 (GAAP) and $0.91 (non-GAAP), exceeding earlier guidance due to strong gross margins and favorable tax effects [1] - The company’s gross margins improved, with total gross margin at 65.9%, product gross margin at 65.1%, and services gross margin at 68.0%, compared to previous quarters [5] - Cisco's Q1 segment performance showed mixed results, with security revenues doubling year-over-year while networking revenues declined by 23% [4] Strategic Developments - Cisco's acquisition of Splunk aims to enhance its security offerings and leverage AI-driven threat detection, with plans to cross-sell to approximately 5,000 existing customers [6] - The company is transitioning towards a recurring revenue model through software subscriptions and service contracts, which is expected to support margin growth [5] Market Positioning - Cisco's stock is currently valued at about 23 times consensus earnings for FY'25, which is considered reasonable despite muted growth expectations [7] - The company is anticipated to perform better than larger tech peers in a potential economic downturn due to its lower valuation and ongoing trends in digitization and networking [7]

Group 1 - Cisco will participate in the 2024 RBC Capital Markets Global TMIT Conference on November 20, 2024, at 8:20 a.m. PT / 11:20 a.m. ET [2] - Cisco's speakers at the conference will include Scott Herren, EVP and Chief Financial Officer, and Mark Patterson, EVP and Chief Strategy Officer [2] - The session will be available via webcast, and interested parties can register on Cisco's Investor Relations website [1][2] Group 2 - Cisco is recognized as a worldwide technology leader focused on securely connecting everything to enable various possibilities [2] - The company's purpose is to power an inclusive future by assisting customers in reimagining applications, powering hybrid work, securing enterprises, transforming infrastructure, and achieving sustainability goals [2]

Cisco Systems NASDAQ: CSCO is a long-term play on AI that investors should heed. Its AI abilities aren’t rooted in GPUs, CPUs, and the training of AI but in the long-term application. AI applications, including agents, assistants, voice interfaces, and other generative models, are the next step and will depend on Cisco's internet infrastructure and networking tools. AI applications will be the largest and fastest-growing segment of AI, which is saying a lot in light of NVIDIA’s NASDAQ: NVDA sustained triple ...

I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking AlphaAnalyst’s Disclosure: I/we have a beneficial long position in the shares of CSCO, AMZN, ...

Cisco Systems (CSCO) reported first-quarter fiscal 2025 non-GAAP earnings of 91 cents per share, which beat the Zacks Consensus Estimate by 4.6%. However, the figure decreased 18% year over year.CSCO’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average earnings surprise being 4.14%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $13.8 billion beat the Zacks Consensus Estimate by 0.57%. The top line decreased 5.6% year over year.Fo ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

Since I upgraded Cisco (NASDAQ: CSCO ) from ‘Sell’ to ‘Buy’ in August 2024, the stock price has increased by 21%, significantly outperforming the overall market. I highlighted the company’s focus on AI, cloud and security markets in my previous article. Notably, their product orders grew by 20% year-over-yearAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this arti ...

Financial Data and Key Metrics Changes - Cisco reported Q1 fiscal year 2025 revenue of $13.8 billion, down 6% year-over-year, but at the high end of guidance [31] - Non-GAAP EPS was $0.91, exceeding guidance, supported by the highest non-GAAP gross margin in over 20 years at 69.3% [8][36] - Non-GAAP net income for the quarter was $3.7 billion, with operating cash flow increasing by 54% to $3.7 billion [37] Business Line Data and Key Metrics Changes - Total product revenue was $10.1 billion, down 9%, while service revenue increased by 6% to $3.7 billion [32] - Security orders more than doubled year-over-year, primarily due to Splunk's contributions, while excluding Splunk, security orders grew by 2% [33][64] - Observability revenue increased by 36%, driven by the Observability Suite and Network Assurance offerings [34] Market Data and Key Metrics Changes - Product orders grew by 20% year-over-year, with enterprise orders up 33% and service provider and cloud orders up 28% [10][35] - In geographic segments, Americas orders increased by 17%, EMEA by 26%, and APJC by 25% [35] - Public sector orders were up 2%, impacted by lower federal spending in the U.S. [13] Company Strategy and Development Direction - Cisco is focusing on AI technology demand, with three pillars: AI training infrastructure, AI network connectivity, and AI network inference [20][29] - The company is investing in innovation through acquisitions, including DeepFactor and Robust Intelligence, to enhance its security offerings [39][40] - Cisco aims to capitalize on the growing demand for modern, resilient networks as AI technology scales [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. federal business faced delays but expected these to normalize, indicating that deals are not lost but postponed [60] - The company anticipates continued strong demand for its products, particularly in AI and cloud infrastructure [19][29] - Guidance for Q2 fiscal year 2025 expects revenue between $13.75 billion and $13.95 billion, with non-GAAP EPS ranging from $0.89 to $0.91 [42] Other Important Information - Cisco returned $3.6 billion to shareholders through dividends and share repurchases during the quarter [38] - The company is enhancing its AI capabilities across its product lines, including the introduction of AI features in Webex [27][28] Q&A Session Summary Question: What is driving the massive growth in cloud orders? - Management noted that four of the six largest cloud players saw order growth exceeding 100%, indicating broad demand across multiple customers [48] Question: What are the drivers and sustainability of strong margins? - The strong margins were attributed to the addition of Splunk, favorable product mix, and productivity enhancements, with expectations to maintain margins in the 68% to 69% range [52][55] Question: How has the macro backdrop evolved? - Management indicated that while U.S. federal spending faced challenges, overall product orders showed balanced strength globally, with good performance in Europe and Asia [58][59] Question: Can you elaborate on the Hypershield deal? - The Hypershield deal involved a large financial institution, indicating strong early adoption and positive feedback for the new security technology [63] Question: What is the impact of data center modernization? - Data center modernization is primarily focused on switching infrastructure, with security also becoming a significant area of investment [95]

For the quarter ended October 2024, Cisco Systems (CSCO) reported revenue of $13.84 billion, down 5.6% over the same period last year. EPS came in at $0.91, compared to $1.11 in the year-ago quarter.The reported revenue represents a surprise of +0.57% over the Zacks Consensus Estimate of $13.76 billion. With the consensus EPS estimate being $0.87, the EPS surprise was +4.60%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...