Core Viewpoint - Cisco Systems reported a decline in both earnings and revenues for the fourth quarter of fiscal 2024, with a notable drop in product revenues, while security revenues showed significant growth [1][2]. Financial Performance - Non-GAAP earnings for Q4 fiscal 2024 were 87 cents per share, exceeding the Zacks Consensus Estimate by 2.35%, but down 23.7% year over year [1]. - Total revenues decreased 10.3% year over year to $13.64 billion, slightly beating the consensus mark by 0.9% [1]. - Product revenues, which account for 72.3% of total revenues, fell 15.4% year over year to $9.86 billion [1]. - Networking revenues dropped 28% year over year to $6.80 billion, while security revenues rose 81% to $1.79 billion [1]. - Service revenues increased 6.5% year over year to $3.78 billion, representing 27.7% of total revenues [1]. Regional Performance - Revenues in the Americas decreased 11% year over year to $8.07 billion, missing the consensus mark by 0.7% [2]. - EMEA revenues declined 11% year over year to $3.51 billion but exceeded the consensus mark by 5.08% [2]. - APJC revenues fell 6% year over year to $2.06 billion, missing the consensus mark by 1.79% [2]. Margins and Expenses - Non-GAAP gross margin expanded by 200 basis points year over year to 67.9% [2]. - Non-GAAP operating margin contracted 280 basis points year over year to 32.5% [3]. - Non-GAAP operating expenses were $4.83 billion, up 3.9% year over year, with operating expenses as a percentage of revenues increasing 480 basis points to 35.4% [2][3]. Balance Sheet and Cash Flow - As of July 27, 2024, cash and cash equivalents totaled $17.9 billion, down from $18.8 billion as of April 27, 2024 [3]. - Total debt decreased to $30.96 billion from $32 billion as of April 27, 2024 [3]. - Cash flow from operating activities was $3.7 billion, lower than the previous quarter's $4 billion [3]. - Remaining performance obligations (RPO) increased 18% to $41 billion, with 51% expected to be recognized as revenue in the next 12 months [3]. Guidance - For Q1 fiscal 2025, revenues are projected between $13.65 billion and $13.85 billion, indicating a 7.5% year-over-year decline [4]. - Non-GAAP earnings are anticipated to be between 86 cents and 88 cents per share, suggesting a 24.3% year-over-year decline [4]. - For fiscal 2025, revenues are expected to range between $55 billion and $56.2 billion, with non-GAAP earnings anticipated between $3.52 and $3.58 per share [4]. Stock Performance - Cisco currently holds a Zacks Rank 2 (Buy) [5]. - CSCO shares have declined 10.1% year to date, contrasting with the Zacks Computer & Technology sector's growth of 18% [5].

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: The Cisco logo appears on a screen at the Nasdaq MarketSite on Oct. 3, 2018 in New York's Times Square. Credit: AP Photo/Richard Drew, File Cisco Systems is planning to lay off 7% of its employees, its second round of job cuts this year, as the company shifts its focus to more rapidly growing areas in technology, such as artific ...

Group 1 - Cisco Systems' shares increased in premarket trading after the company reported earnings that exceeded Wall Street's expectations and announced a 7% reduction in its global workforce [1][2] - The company's shares have declined approximately 10% since the beginning of the year, but they rose by 6% to $48.17 shortly before the market opened [2] - Cisco plans to invest in key growth opportunities to diversify its revenue, as its core networking business has faced pressure due to enterprise customers transitioning to cloud computing [2] Group 2 - Cisco shares formed a head and shoulders pattern from April 2023 to January 2024, indicating a potential market top, and a bearish death cross occurred when the 50-day moving average fell below the 200-day moving average [3] - Despite breaking below the neckline of the head and shoulders pattern, trading volumes have been low, indicating a lack of conviction in the downward movement [3] - Following the earnings report, investors should watch for resistance levels at $48.50, $50, $52.50, and $58, where selling pressure may occur [4][5]

Financial Data and Key Metrics Changes - Cisco reported Q4 revenue of $13.6 billion, exceeding the high end of guidance, and total revenue for fiscal year 2024 was $53.8 billion, down from $57 billion in fiscal 2023 [7][24] - Non-GAAP net income for Q4 was $3.5 billion, with non-GAAP earnings per share at $0.87, also above guidance [19][10] - The gross margin for Q4 was 67.9%, the highest in 20 years, reflecting a 200 basis point increase year-over-year [22][25] Business Line Data and Key Metrics Changes - Total product revenue was $9.9 billion, down 15% year-over-year, while services revenue increased by 6% to $3.8 billion [20] - Security revenue surged by 81% due to the acquisition of Splunk, with a 6% growth excluding Splunk [20] - Collaboration revenue remained flat, while observability revenue grew by 41%, with a 12% increase excluding Splunk [20][21] Market Data and Key Metrics Changes - Product orders increased by 14% year-over-year, with a 6% increase excluding Splunk, indicating a recovery from inventory digestion [22] - Public sector orders rose by 20%, enterprise orders increased by 13%, and service provider cloud orders grew by 5% [22] - Geographic product order growth was 15% in the Americas, 12% in EMEA, and 16% in APJC [22] Company Strategy and Development Direction - Cisco is focusing on integrating its networking, security, and collaboration teams to enhance product offerings and customer solutions [8] - The company is investing in AI, cloud, and cybersecurity as key growth areas, with a restructuring plan to improve efficiency and resource allocation [9][26] - The integration of Splunk is expected to enhance Cisco's capabilities in security and observability, driving further innovation [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic environment, emphasizing the importance of execution in growth markets [18] - The restructuring plan is aimed at reallocating resources to high-growth areas rather than merely cutting costs [26] - Management noted that customers are increasingly preparing their infrastructure for AI applications, indicating a shift in investment priorities [30] Other Important Information - Cisco returned $3.6 billion to shareholders in Q4, totaling $12.1 billion for fiscal 2024, representing 119% of free cash flow [11][25] - The company expects fiscal Q1 revenue to be between $13.65 billion and $13.85 billion, with a non-GAAP earnings per share guidance of $0.86 to $0.88 [26] Q&A Session Summary Question: Customer budget prioritization and AI initiatives - Management noted balanced demand across regions and sectors, with enterprise customers upgrading infrastructure in preparation for AI [29][30] Question: Impact of layoffs on fiscal '25 guidance - Management confirmed that the restructuring is embedded in the fiscal '25 guidance, focusing on reallocating resources rather than cost savings [34][35] Question: Concerns about restructuring amid growth - Management clarified that the restructuring is about ensuring agility in a rapidly changing market, not a response to declining demand [39] Question: Security performance and market dynamics - Management reported strong growth in security, with increasing customer adoption of new security solutions [41][42] Question: AI orders and revenue translation - Management indicated that AI orders are primarily from web scale customers, with enterprise adoption expected to grow [44][46] Question: Integration of networking, security, and collaboration - Management emphasized the need for cross-integration to enhance competitive differentiation and meet customer needs [50][51] Question: Cloud order growth and performance - Management acknowledged mixed results in cloud orders but expressed optimism about future growth as the market stabilizes [68][70]

Wednesday, August 14th, 2024Markets continued to make gains today, following a favorable Consumer Price Index (CPI) report for July and a solidifying notion that a rate cut from the Fed is on the way at its September meeting. After some erratic jumping around today, the Dow closed +242 points, +0.61%, while the Nasdaq barely eked out a green finish: +5 points, +0.03%. The S&P 500 and small-cap Russell 2000 were mixed: +0.38% on the former, -0.46% on the latter.At +2.9%, July CPI year over year — the Inflati ...

Core Insights - Cisco Systems reported revenue of $13.64 billion for the quarter ended July 2024, a decrease of 10.3% year-over-year, with EPS at $0.87 compared to $1.14 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $13.52 billion by 0.90%, and EPS also surpassed the consensus estimate of $0.85 by 2.35% [1] Revenue Performance - Total Remaining Performance Obligations (RPO) stood at $41.05 billion, below the average estimate of $42.31 billion from two analysts [3] - Networking product revenue was $6.80 billion, slightly above the average estimate of $6.76 billion, but represented a year-over-year decline of 16.3% [4] - Observability product revenue reached $248 million, exceeding the estimated $243.65 million [5] - Services revenue was $3.78 billion, surpassing the average estimate of $3.73 billion, reflecting a year-over-year increase of 6.5% [6] - Security product revenue was $1.79 billion, significantly above the average estimate of $1.64 billion, marking an impressive year-over-year growth of 81.1% [7] - Overall product revenue totaled $9.86 billion, exceeding the average estimate of $9.66 billion, but showing a year-over-year decline of 15.4% [8] - Collaboration product revenue matched the estimate at $1.02 billion, with a slight year-over-year decrease of 0.4% [9] Gross Margin - Non-GAAP gross margin for services was $2.66 billion, above the average estimate of $2.55 billion [10] - Non-GAAP gross margin for products was $6.61 billion, exceeding the average estimate of $6.34 billion [11] Stock Performance - Cisco shares have returned -4.3% over the past month, compared to a -3.2% change in the Zacks S&P 500 composite [11] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [11]

Key TakeawaysCisco is cutting 7% of its workforce, months after revealing a 5% cut in February.The company's fiscal fourth-quarter results beat revenue and earnings expectations.The results were helped by Cisco's $28 billion acquisition of cybersecurity firm Splunk in March. Cisco Systems (CSCO) is cutting about 7% of its workforce as it pivots to higher-growth areas like cybersecurity and artificial intelligence (AI), the company announced in an SEC filing alongside its fiscal fourth-quarter results. The m ...

Cisco Systems (CSCO) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.35%. A quarter ago, it was expected that this seller of routers, switches, software and services would post earnings of $0.83 per share when it actually produced earnings of $0.88, delivering a surprise of 6.02%.Ov ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

[Earnings Summary](index=1&type=section&id=Earnings%20Summary) Cisco's financial results for Q4 and full fiscal year 2024 are presented, including key performance metrics and future guidance [Fourth Quarter (Q4) FY 2024 Performance](index=1&type=section&id=Fourth%20Quarter%20(Q4)%20FY%202024%20Performance) Cisco's Q4 FY2024 saw revenue decline but strong product order growth, with EPS significantly impacted by the Splunk acquisition Q4 FY 2024 Financial Results vs. Q4 FY 2023 | Metric | Q4 FY 2024 | Q4 FY 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | **Revenue** | $13.6 billion | $15.2 billion | -10% | | **GAAP Net Income** | $2.2 billion | $4.0 billion | -45% | | **GAAP EPS** | $0.54 | $0.97 | -44% | | **Non-GAAP Net Income** | $3.5 billion | $4.7 billion | -25% | | **Non-GAAP EPS** | $0.87 | $1.14 | -24% | - Product order growth was strong at **14%** year-over-year, or **6%** when excluding the contribution from the newly acquired Splunk[2](index=2&type=chunk) - The acquisition of Splunk, including financing costs, negatively impacted Q4 GAAP EPS by **$0.16** and Non-GAAP EPS by **$0.04**[5](index=5&type=chunk)[6](index=6&type=chunk) [Fiscal Year (FY) 2024 Performance](index=1&type=section&id=Fiscal%20Year%20(FY)%202024%20Performance) Cisco's FY2024 revenue decreased 6% to $53.8 billion, while achieving a 20-year high Non-GAAP gross margin and strong recurring revenue growth FY 2024 Financial Results vs. FY 2023 | Metric | FY 2024 | FY 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | **Revenue** | $53.8 billion | $57.0 billion | -6% | | **GAAP Net Income** | $10.3 billion | $12.6 billion | -18% | | **GAAP EPS** | $2.54 | $3.07 | -17% | | **Non-GAAP Net Income** | $15.2 billion | $16.0 billion | -5% | | **Non-GAAP EPS** | $3.73 | $3.89 | -4% | - Total Annualized Recurring Revenue (ARR) reached **$29.6 billion**, up **22%** year-over-year, which includes a **$4.3 billion** contribution from Splunk[2](index=2&type=chunk) - Total software revenue for FY2024 was **$18.4 billion**, an increase of **9%** YoY, with software subscription revenue comprising **89%** of this total[2](index=2&type=chunk) [Business Outlook](index=1&type=section&id=Business%20Outlook) Cisco projects Q1 FY2025 revenue between $13.65 billion and $13.85 billion, with full fiscal year 2025 revenue anticipated at $55.0 billion to $56.2 billion Q1 FY 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | **Revenue** | $13.65 billion - $13.85 billion | | **Non-GAAP Gross Margin** | 67% - 68% | | **Non-GAAP Operating Margin** | 32% - 33% | | **GAAP EPS** | $0.35 - $0.42 | | **Non-GAAP EPS** | $0.86 - $0.88 | Full Year FY 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | **Revenue** | $55.0 billion - $56.2 billion | | **GAAP EPS** | $1.93 - $2.05 | | **Non-GAAP EPS** | $3.52 - $3.58 | [Detailed Financial Highlights](index=3&type=section&id=Detailed%20Financial%20Highlights) A detailed breakdown of Cisco's Q4 and full fiscal year 2024 financial results is presented, covering revenue, operating metrics, and capital allocation [Q4 FY 2024 Financial Details](index=3&type=section&id=Q4%20FY%202024%20Financial%20Details) Q4 FY2024 revenue declined 10% to $13.6 billion, with product revenue down 15%, while Splunk boosted Security and Observability segments - Splunk contributed approximately **$960 million** to total revenue in Q4 FY2024[11](index=11&type=chunk) Q4 FY 2024 Revenue Performance | Category | Performance (YoY Change) | | :--- | :--- | | **By Geography** | | | Americas | -11% | | EMEA | -11% | | APJC | -6% | | **By Product** | | | Networking | -28% | | Security | +81% (+6% excl. Splunk) | | Collaboration | Flat | | Observability | +41% (+12% excl. Splunk) | - Q4 Non-GAAP total gross margin was **67.9%**, up from **65.9%** in Q4 2023, with Non-GAAP operating expenses increasing by **4%** to **$4.8 billion**[12](index=12&type=chunk) - Cash flow from operating activities for Q4 was **$3.7 billion**, a decrease of **37%** compared to the same quarter last year[13](index=13&type=chunk) [FY 2024 Financial Details](index=3&type=section&id=FY%202024%20Financial%20Details) FY2024 total revenue decreased 6% to $53.8 billion, with GAAP net income down 18%, and operating cash flow significantly declining by 45% FY 2024 Key Metrics | Metric | FY 2024 Value | YoY Change | | :--- | :--- | :--- | | **Total Revenue** | $53.8 billion | -6% | | **GAAP Net Income** | $10.3 billion | -18% | | **GAAP EPS** | $2.54 | -17% | | **Non-GAAP Net Income** | $15.2 billion | -5% | | **Non-GAAP EPS** | $3.73 | -4% | - Cash flow from operating activities for fiscal 2024 was **$10.9 billion**, a significant decrease of **45%** compared with **$19.9 billion** for fiscal 2023[14](index=14&type=chunk) [Balance Sheet and Capital Allocation](index=3&type=section&id=Balance%20Sheet%20and%20Capital%20Allocation) Cisco ended FY2024 with $17.9 billion in cash, strong RPO growth to $41.0 billion, and returned $3.6 billion to shareholders in Q4 - Cash and cash equivalents and investments totaled **$17.9 billion** at the end of fiscal 2024, down from **$26.1 billion** at the end of fiscal 2023[14](index=14&type=chunk) - Total Remaining Performance Obligations (RPO) grew **18%** to **$41.0 billion**, with product RPO up **27%**, and deferred revenue increased **11%** to **$28.5 billion**[15](index=15&type=chunk) Q4 FY 2024 Capital Allocation | Allocation Type | Amount | | :--- | :--- | | **Share Buybacks** | $2.0 billion | | **Dividends Paid** | $1.6 billion | | **Total Returned** | **$3.6 billion** | - Cisco declared a quarterly dividend of **$0.40** per common share[9](index=9&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Cisco's consolidated financial statements are presented, detailing statements of operations, balance sheets, cash flows, and revenue breakdowns by segment and product group [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) FY2024 total revenue decreased 6% to $53.8 billion, with operating expenses rising 9%, leading to a 19% decline in operating income and an 18% drop in net income FY 2024 vs. FY 2023 Statement of Operations (in millions) | Line Item | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | **Total Revenue** | $53,803 | $56,998 | | **Gross Margin** | $34,828 | $35,753 | | **Operating Income** | $12,181 | $15,031 | | **Net Income** | $10,320 | $12,613 | | **Diluted EPS** | $2.54 | $3.07 | [Revenue and Gross Margin by Segment](index=6&type=section&id=Revenue%20and%20Gross%20Margin%20by%20Segment) Q4 FY2024 revenue declined across all geographic segments, with Americas being the largest contributor for the full year and EMEA reporting the highest gross margin Revenue by Geographic Segment (YoY % Change) | Segment | Q4 FY 2024 | Full Year FY 2024 | | :--- | :--- | :--- | | Americas | (11)% | (4)% | | EMEA | (11)% | (7)% | | APJC | (6)% | (8)% | | **Total** | **(10)%** | **(6)%** | Gross Margin Percentage by Segment (Full Year FY 2024) | Segment | Gross Margin % | | :--- | :--- | | Americas | 66.8% | | EMEA | 69.1% | | APJC | 67.2% | [Revenue by Product and Service Groups](index=6&type=section&id=Revenue%20by%20Product%20and%20Service%20Groups) Q4 FY2024 saw Networking revenue decline 28%, offset by strong growth in Security and Observability driven by Splunk, while services revenue grew 6% Revenue by Product/Service Group (YoY % Change) | Group | Q4 FY 2024 | Full Year FY 2024 | | :--- | :--- | :--- | | Networking | (28)% | (15)% | | Security | 81% | 32% | | Collaboration | —% | 2% | | Observability | 41% | 27% | | **Total Product** | **(15)%** | **(9)%** | | **Services** | **6%** | **5%** | - Excluding the impact of Splunk, the Security segment grew **6%** in Q4 and **4%** for the full fiscal year, while the Observability segment grew **12%** in Q4 and **15%** for the full year[25](index=25&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 27, 2024, total assets increased to $124.4 billion, driven by goodwill from acquisitions, while total liabilities rose to $79.0 billion due to increased debt Key Balance Sheet Items (in millions) | Item | July 27, 2024 | July 29, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $36,862 | $43,348 | | **Goodwill** | $58,660 | $38,535 | | **Total Assets** | $124,413 | $101,852 | | **Total Current Liabilities** | $40,584 | $31,309 | | **Long-term Debt** | $19,621 | $6,658 | | **Total Liabilities** | $78,956 | $57,499 | | **Total Equity** | $45,457 | $44,353 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) FY2024 operating cash flow decreased 45% to $10.9 billion, while investing activities used $20.5 billion primarily for acquisitions, funded partly by $6.8 billion from financing activities FY 2024 vs. FY 2023 Cash Flow Summary (in millions) | Activity | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $10,880 | $19,886 | | **Net Cash used in Investing Activities** | ($20,478) | ($5,107) | | **Net Cash from/(used in) Financing Activities** | $6,844 | ($11,626) | [Key Business Metrics](index=9&type=section&id=Key%20Business%20Metrics) FY2024 saw RPO grow 18% to $41.0 billion, with total deferred revenue at $28.5 billion, and $12.15 billion returned to shareholders through dividends and repurchases Remaining Performance Obligations (RPO) (in millions) | Category | July 27, 2024 | YoY Change | | :--- | :--- | :--- | | Product | $20,055 | 27% | | Services | $20,993 | 10% | | **Total** | **$41,048** | **18%** | Deferred Revenue (in millions) | Category | July 27, 2024 | | :--- | :--- | | Product | $13,219 | | Services | $15,256 | | **Total** | **$28,475** | FY 2024 Dividends and Repurchases (in millions) | Quarter | Dividends Paid | Stock Repurchased | | :--- | :--- | :--- | | Q4 2024 | $1,606 | $2,002 | | Q3 2024 | $1,615 | $1,256 | | Q2 2024 | $1,583 | $1,254 | | Q1 2024 | $1,580 | $1,252 | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Cisco's GAAP financial results are reconciled to Non-GAAP measures for net income, EPS, and operational metrics, including future guidance adjustments [GAAP to Non-GAAP Net Income and EPS Reconciliation](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Net%20Income%20and%20EPS%20Reconciliation) FY2024 GAAP net income of $10.3 billion was reconciled to Non-GAAP net income of $15.2 billion, primarily adjusted for share-based compensation and amortization, resulting in a Non-GAAP EPS of $3.73 FY 2024 GAAP to Non-GAAP Net Income Reconciliation (in millions) | Description | Amount | | :--- | :--- | | **GAAP Net Income** | **$10,320** | | Share-based compensation expense | $3,051 | | Amortization of acquisition-related intangible assets | $1,634 | | Acquisition-related/divestiture costs | $734 | | Significant asset impairments and restructurings | $789 | | Other adjustments & tax effects | $103 | | **Non-GAAP Net Income** | **$15,150** | FY 2024 GAAP to Non-GAAP EPS Reconciliation | Description | Amount | | :--- | :--- | | **GAAP EPS** | **$2.54** | | Share-based compensation expense | $0.75 | | Amortization of acquisition-related intangible assets | $0.40 | | Acquisition-related/divestiture costs | $0.18 | | Significant asset impairments and restructurings | $0.19 | | Other adjustments & tax effects | ($0.33) | | **Non-GAAP EPS** | **$3.73** | [GAAP to Non-GAAP Detailed Line Item Reconciliation](index=12&type=section&id=GAAP%20to%20Non-GAAP%20Detailed%20Line%20Item%20Reconciliation) FY2024 Non-GAAP total gross margin was 67.5% (vs. 64.7% GAAP) and Non-GAAP operating margin was 34.2% (vs. 22.6% GAAP), reflecting significant operating expense adjustments FY 2024 GAAP vs. Non-GAAP Margins | Margin Type | GAAP | Non-GAAP | | :--- | :--- | :--- | | **Total Gross Margin** | 64.7% | 67.5% | | **Operating Margin** | 22.6% | 34.2% | - For FY2024, total adjustments to GAAP operating expenses were **$4.7 billion**, primarily consisting of share-based compensation (**$2.5B**), amortization of intangibles (**$0.7B**), and restructuring charges (**$0.8B**)[37](index=37&type=chunk)[47](index=47&type=chunk) [GAAP to Non-GAAP Guidance Reconciliation](index=14&type=section&id=GAAP%20to%20Non-GAAP%20Guidance%20Reconciliation) Cisco's Q1 FY2025 GAAP EPS guidance of $0.35-$0.42 is reconciled to Non-GAAP EPS of $0.86-$0.88, reflecting adjustments for share-based compensation, amortization, and a new restructuring plan Q1 FY 2025 GAAP to Non-GAAP EPS Guidance Reconciliation | Description | EPS Impact | | :--- | :--- | | **GAAP EPS** | **$0.35 - $0.42** | | Share-based compensation expense | $0.16 - $0.17 | | Amortization & acquisition costs | $0.17 - $0.18 | | Significant asset impairments and restructurings | $0.13 - $0.16 | | **Non-GAAP EPS** | **$0.86 - $0.88** | - Cisco announced a new restructuring plan expected to result in pre-tax charges of up to **$1 billion**, with approximately **$700 million to $800 million** to be recognized in the first quarter of fiscal 2025[51](index=51&type=chunk)