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)

Cisco shares popped 6% in extended trading on Wednesday after the networking company said it's cutting 7% of its global workforce and reported quarterly results that topped analysts' estimates.Here are the key numbers:Earnings: 87 cents per share, adjusted, vs. 85 cents per share estimate, adjusted, according to LSEG.Revenue: $13.64 billion vs. $13.54 billion estimate, according to LSEG.Cisco said in a filing that it's implementing a restructuring plan that will result in $1 billion in pre-tax charges to it ...

Cisco Systems, Inc. CSCO is expected to release earnings results for its fourth quarter, after the closing bell on Wednesday, Aug. 14.Analysts expect the San Jose, California-based company to report quarterly earnings at 85 cents per share, down from $1.08 per share in the year-ago period. Cisco is projected to post revenue of $13.54 billion, compared to $14.45 billion a year earlier, according to data from Benzinga Pro.According to a recent Reuters report, Cisco plans to lay off thousands of employees in a ...

Cisco (NASDAQ:CSCO) is among the large-cap tech stocks that investors may not necessarily pay as close attention to as, say, others in the so-called “Magnificent Seven.” However, the company is seeing significant attention today, with the latest round of Cisco layoffs reportedly set to be carried out soon.This latest round of layoffs will affect at least 4,000 employees. The company is expected to make the official announcement in its upcoming quarterly earnings report, which is due tomorrow.With many tech ...

Cisco Systems Inc CSCO is set to report its fourth-quarter earnings after market hours on Wednesday.Wall Street expects 85 cents in EPS and $13.54 billion in revenues as the company reportsLet’s look at what the charts indicate for Cisco stock, which is down 16.18% over the last year and 10.58% year-to-date. The share price of $45.06 is trading below its five-, 20- and 50-day exponential moving averages. This consistent positioning below key moving averages indicates significant selling pressure. Chart crea ...

Cisco Systems (CSCO) is set to release its fourth-quarter fiscal 2024 results on Aug 14.The company anticipates fourth-quarter fiscal 2024 revenues to be between $13.4 billion and $13.6 billion. Non-GAAP earnings are expected between 84 and 86 cents per share. The Zacks Consensus Estimate for revenues is pegged at $13.52 billion, indicating a decline of 11.07% from the year-ago quarter’s reported figure. The consensus mark for earnings has been steady at 85 cents per share in the past 30 days. CSCO’s earnin ...