A month has gone by since the last earnings report for Cisco Systems (CSCO) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Cisco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Cisco Systems reported fourth-quarter fiscal 2024 non-GAA ...

Cisco Systems, Inc. (NASDAQ:CSCO) Goldman Sachs Communacopia + Technology Conference September 10, 2024 11:10 AM ET Company Participants Scott Herren - EVP and CFO Conference Call Participants Mike Ng - Goldman Sachs Mike Ng Great. Well, thank you everybody. Welcome to the Cisco fireside chat at the Goldman Sachs Communacopia and Technology Conference. I have the privilege of introducing Scott Herren, who is the Executive Vice President and CFO of Cisco. Scott joined Cisco in 2020 from Autodesk, where he se ...

Strategy and Market Focus - Cisco's strategy focuses on securely connecting everything to enhance customer outcomes and experiences[5] - Customers prioritize modernizing infrastructure, improving cybersecurity, and harnessing AI and data[8][9][10] - The acquisition of Splunk in Q3 fiscal 2024 enhances Cisco's security capabilities and integrates advanced threat detection[14] - The company continues to invest in multicloud architectures to ensure operational consistency across applications and data[8] - The company continues to evaluate acquisition opportunities to enhance its technology and capabilities, focusing on key priority areas[25] - The company is focusing on developing new products and services in key priority areas such as AI, cloud, and cybersecurity, but faces risks related to timely market acceptance[64] Product and Service Offerings - Cisco's Observability offerings provide automated insights and proactive recommendations to improve IT productivity and user experience[8] - Cisco's collaboration portfolio includes the Webex Suite and CPaaS, aimed at improving employee and customer experiences[15] - Cisco's networking technologies include the Catalyst 9000 series and Nexus 9000 series, designed for scalability and security[13] - The company aims to deliver comprehensive advisory services to help customers migrate to new technology platforms and optimize their operations[18] Financial Performance and Challenges - Revenue for fiscal 2024 experienced a decline due to reduced product demand, with customers taking longer to implement previous shipments[53] - The company faced challenges in predicting revenue due to nonlinear sales patterns and manufacturing issues, which could lead to increased costs and underutilized capacity[53] - Supply chain issues, including component shortages and financial problems of contract manufacturers, could adversely impact business operations and gross margins[54] - The company has increased inventory and purchase commitments in response to industry-wide supply constraints, which may lead to excess inventory charges if demand decreases[55] - Product gross margin increased in fiscal 2024 but may not be sustainable due to various factors, including changes in customer mix and increased manufacturing costs[56] - Sales to the service provider and cloud market have been volatile, with significant decreases in orders during fiscal 2024, potentially impacting future revenue[57] Competition and Market Risks - The company faces competition from numerous vendors in the networking and communications equipment markets, with price-focused competition particularly from Asian competitors[29] - The company faces intense competition in rapidly changing markets, particularly from Asian competitors, especially in China, which is expected to continue[59] - The company anticipates that competition will increase as new entrants leverage technology delivered as a service[60] - The company is exposed to fluctuations in currency exchange rates, which could adversely affect financial results and cash flows[71] - The company faces significant competition in the AI technology market, which is rapidly evolving and presents risks related to legal and regulatory compliance[71] Employee and Corporate Culture - The company is ranked 2 on the Fortune 100 Best Companies to Work For® 2024, with approximately 90,400 employees as of July 27, 2024[37] - The company has achieved a global employee base comprised of 29% women and 71% men, with 36% of its Executive Leadership Team being women[39] - The company emphasizes a Conscious Culture to attract and retain talent, fostering an environment where employees feel valued and empowered[37] - Cisco continues to emphasize employee health and well-being, offering paid days off called "A Day for Me" for employees to recharge[41] - The company has expanded its pay parity program to include promotions, bonuses, and stock decisions, addressing compensation fairness across all employee demographics[40] Legal, Regulatory, and Compliance Risks - The company is at risk of adverse outcomes from litigation or governmental investigations, which could disrupt operations[73] - Legal and regulatory challenges related to AI technology could harm the company's reputation and business operations[70] - Changes in tax laws and regulations could negatively impact the company's provision for income taxes[75] - Compliance with evolving global privacy and data protection laws is complex and costly, with potential liabilities for non-compliance[85] - Changes in regulatory requirements, including economic sanctions and telecommunications regulations, could materially affect the sales and use of the company's products and services[86] Environmental and Social Governance (ESG) - The company aims to achieve net zero across all scopes of greenhouse gas emissions by 2040, relying on the accuracy of estimates regarding power efficiency and renewable energy adoption[78] - Cisco's ESG initiatives and progress can be accessed through their annual Purpose Report and ESG Reporting Hub[45] Financial Instruments and Debt - As of the end of fiscal 2024, the company has senior unsecured notes outstanding totaling $20.3 billion, maturing between 2025 and 2064[77] - The company has established a commercial paper program with a maximum aggregate amount of $15.0 billion, with $10.9 billion in commercial paper notes outstanding as of July 27, 2024[77] Risks Related to Technology and Operations - Cyber attacks and data breaches pose significant risks to the company's operations and reputation, potentially leading to legal and regulatory actions[83] - The development of new technologies is complex and uncertain, and failure to meet customer needs could harm market share and operating results[63] - The company must effectively manage relationships with customers, suppliers, and strategic partners to avoid material harm to its business[60] - The company relies on third-party licenses for many of its products, and the inability to obtain these licenses on favorable terms could materially harm its business[81]

ToplineJob losses at U.S.-based employers spiked in August to a five-month high of just over 75,000 cut positions for the month, a signal of economic uncertainty and a softening labor market, according to a new report from career services firm Challenger, Gray & Christmas.Signage with logo at the Silicon Valley headquarters of Cisco in San Jose, California on Aug. 17, ... [+] 2017.Getty Images Key FactsThe number of job cuts in August was a 193% jump from those announced in July, and the highest single-mont ...

Group 1 - Honeywell International Inc. (HON) has partnered with Cisco Systems, Inc. (CSCO) to create an AI-powered solution aimed at reducing energy consumption and improving worker productivity and comfort [1] - Cisco Spaces, a workspace management solution, collects occupancy and environmental data to optimize energy use and enhance building operations without requiring additional hardware [2] - The collaboration aligns with Honeywell's goals of reducing the environmental footprint of buildings and focuses on automation, energy transition, and sustainability [3] Group 2 - Honeywell's commercial aviation and building automation segments are performing well, with a 10.4% increase in shares over the past year, contrasting with a 1.1% decline in the industry [4] - There are concerns regarding the Industrial Automation segment due to decreased demand for projects and personal protective equipment within the sensing and safety technologies business [4]

The Nasdaq 100 closed lower by over 300 points during Thursday's session. Investors, meanwhile, focused on some notable insider trades.When insiders sell shares, it could be a preplanned sale, or could indicate their concern in the company's prospects or that they view the stock as being overpriced. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.Below is a look at a few recent notable insider sales. ...

SAN JOSE, Calif., Aug. 23, 2024 /PRNewswire/ -- Cisco today announced that it will host and/or participate in the following events with the financial community in August and September.Webcasts and replays will be made available for applicable events on Cisco's Investor Relations website at https://investor.cisco.com/. No new financial information will be discussed at these events.Jefferies Semiconductor, IT Hardware & Communications Technology Conference, ChicagoAugust 27, 2024Rakesh Chopra, SVP & Fellow, C ...

SUQIAN, CHINA - AUGUST 15, 2024 - Illustration Cisco to cut 7% of its workforce, Suqian, Jiangsu ... [+] province, China, August 15, 2024. (Photo credit should read CFOTO/Future Publishing via Getty Images)CFOTO/Future Publishing via Getty ImagesIf you are a Cisco (NASDAQ:CSCO) investor and took advantage of its recent run-up following the company’s better-than-expected Q4 FY’24 results, it may be time to look elsewhere. As of this moment, we find TC Energy (NYSE:TRP) – an operator of energy infrastructure ...

IBM and Cisco are racking up AI-related sales.The artificial intelligence (AI) boom is reshuffling the technology industry, minting new winners and leaving others behind. International Business Machines (IBM 0.60%) and Cisco Systems (CSCO 0.42%) certainly looked like they were missing the AI boat over the past couple of years, but both companies now have AI strategies that are on track to bring in billions in annual revenue.International Business MachinesNot every company can slap ChatGPT into its employee- ...

Investment Rating - The report does not explicitly state an investment rating for Cisco (CSCO) Core Insights - Cisco's FY2024 revenue was $53.8 billion, a decrease of 6% year-over-year, with Non-GAAP net income of $15.2 billion, down 5% year-over-year, and earnings per share of $3.73. In Q4 alone, revenue was $13.6 billion, down 10% year-over-year, with Non-GAAP net income of $3.5 billion, down 25% year-over-year, and earnings per share of $0.87 [1][5][11] - The company is focusing on investments in AI, cloud, and cybersecurity while optimizing resource allocation through restructuring plans [5][12] - The company expects Q1 FY2025 revenue to be between $13.65 billion and $13.85 billion, with Non-GAAP earnings per share projected between $0.86 and $0.88. For FY2025, revenue is expected to be between $55 billion and $56.2 billion, with Non-GAAP earnings per share projected between $3.52 and $3.58 [11][14] Revenue Breakdown By Product and Service - In FY2024 Q4, data security and observability businesses showed significant growth, while network product revenue declined by 28%. Overall product revenue decreased. For FY2024, network hardware revenue was $29.2 billion, down 15% year-over-year; cybersecurity product revenue was $5.1 billion, up 32%; collaboration product revenue was $4.1 billion, up 2%; observability revenue was $0.8 billion, up 27%; and technical support and services revenue was $14.6 billion, up 5% [7][8] - In Q4 alone, network hardware revenue was $6.8 billion, down 28% year-over-year; cybersecurity product revenue was $1.8 billion, up 81%; collaboration product revenue was $1 billion; observability revenue was $0.2 billion, up 41%; and technical support and services revenue was $3.8 billion, up 6% [7][8] By Region - For FY2024, revenue from the Americas, Europe, Middle East, Africa, and Asia-Pacific was $32 billion, $14.1 billion, and $7.7 billion, respectively, representing year-over-year declines of 4%, 7%, and 8%. In Q4, revenue from these regions was $8.1 billion, $3.5 billion, and $2.1 billion, respectively, with declines of 11% for both the Americas and Europe, and a 6% decline for Asia-Pacific [9][10] FY2025 Guidance - Cisco anticipates Q1 FY2025 revenue between $13.65 billion and $13.85 billion, with Non-GAAP earnings per share between $0.86 and $0.88. For the full FY2025, revenue is expected to be between $55 billion and $56.2 billion, with Non-GAAP earnings per share between $3.52 and $3.58 [11][14]