Cisco Systems(US:CSCO)2025-05-20 20:35Revenue Performance - Total revenue for the three months ended April 26, 2025, was $14.149 billion, an increase of 11% compared to $12.702 billion for the same period in 2024[185]. - Total revenue for the nine months ended April 26, 2025, increased by 5%, with both product and service revenue growing by 5%[194]. - Total revenue for the three months ended April 26, 2025, was $14,149 million, an increase of 11% from $12,702 million in the same period of fiscal 2024[220]. - Total revenue for the nine months ended April 26, 2025, was $41,981 million, reflecting a 5% increase from $40,161 million in the same period of fiscal 2024[220]. - The Americas segment generated $8,380 million in revenue for the three months ended April 26, 2025, a 14% increase from $7,372 million in the same period of fiscal 2024[221]. - EMEA segment revenue was $3,736 million for the three months ended April 26, 2025, an 8% increase from $3,458 million in the same period of fiscal 2024[221]. - APJC segment revenue increased by 9% to $2,034 million for the three months ended April 26, 2025, compared to $1,873 million in the same period of fiscal 2024[221]. Income and Earnings - Net income for the three months ended April 26, 2025, was $2.491 billion, a 32% increase from $1.886 billion in the same period last year[185]. - Diluted earnings per share increased by 35% to $0.62, compared to $0.46 in the prior year[185]. - Operating income increased by 46% for the three months ended April 26, 2025, with operating income as a percentage of revenue rising by 5.4 percentage points to 22.6%[281]. Expenses - Research and development expenses rose by 20% to $2.335 billion, while sales and marketing expenses increased by 6% to $2.724 billion[185]. - Research and Development expenses increased by 20% for the three months ended April 26, 2025, totaling $2,335 million, representing 16.5% of revenue[263]. - Services gross margin percentage decreased by 0.5 percentage points for the three months ended April 26, 2025, mainly due to higher headcount-related costs[255]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended April 26, 2025, was $9.959 billion, up from $7.150 billion in the prior year[196]. - Free cash flow increased by $2,593 million (38.9%) to $9,271 million for the nine months ended April 26, 2025, compared to $6,678 million for the same period in 2024[296]. - Cash and cash equivalents increased by $653 million (8.7%) to $8,161 million as of April 26, 2025, compared to $7,508 million as of July 27, 2024[293]. Debt and Financial Obligations - Total debt decreased to $29.279 billion from $30.962 billion year-over-year[196]. - The company issued senior notes for an aggregate principal amount of $5.0 billion in February 2025, bringing total senior notes outstanding to $25.25 billion[310]. - The company maintained compliance with all debt covenants as of April 26, 2025[311]. Inventory and Commitments - Provision for inventory was $593 million for the first nine months of fiscal 2025, compared to $348 million in the same period of fiscal 2024[207]. - Inventory purchase commitments increased by $1,187 million (23.0%) to $6,345 million as of April 26, 2025, compared to $5,158 million as of July 27, 2024[301]. - The volume of channel partner financing was $18.1 billion for the first nine months of fiscal 2025, down from $20.9 billion in the same period of fiscal 2024[309]. Taxation - The effective tax rate was 15.5% for the third quarter of fiscal 2025, compared to 15.6% in the same quarter of fiscal 2024[216]. - The effective tax rate for the first nine months of fiscal 2025 was 5.8%, a decrease from 17.1% for the same period in fiscal 2024, primarily due to a $720 million tax benefit[290]. Market and Foreign Exchange - Approximately 70% of operating expenses are denominated in U.S. dollars[331]. - The company conducts business globally in numerous currencies, with revenue primarily denominated in U.S. dollars[330]. - The company may hedge certain forecasted foreign currency transactions to reduce variability in operating expenses[331].