CISCO REPORTS FIRST QUARTER EARNINGS

Core Viewpoint - Cisco reported a strong start to fiscal 2025 with a 20% year-over-year increase in product orders, reflecting normalizing demand, despite a 6% decline in total revenue compared to the previous year [1][4]. Financial Performance - Q1 FY 2025 Results: - Revenue: $13.8 billion, down 6% year-over-year [2][4]. - GAAP EPS: $0.68, a decrease of 24% year-over-year; Non-GAAP EPS: $0.91, down 18% year-over-year [2][5]. - Gross margin: GAAP gross margin at 65.9%, non-GAAP gross margin at 69.3%, both above guidance [1][4]. - Revenue Breakdown: - Product revenue decreased by 9%, while services revenue increased by 6% [4]. - Geographic revenue performance: Americas down 9%, EMEA down 2%, APJC up 1% [4][11]. - Operating Income: - GAAP operating income was $2.4 billion, down 45%, with a GAAP operating margin of 17.0% [4][5]. - Non-GAAP operating income was $4.7 billion, down 12%, with a non-GAAP operating margin of 34.1% [4]. Guidance - Q2 FY 2025 Guidance: - Expected revenue between $13.75 billion and $13.95 billion [6]. - GAAP EPS forecasted between $0.51 and $0.56; Non-GAAP EPS between $0.89 and $0.91 [6]. - FY 2025 Guidance: - Projected revenue between $55.3 billion and $56.3 billion [7]. - GAAP EPS expected between $2.26 and $2.38; Non-GAAP EPS between $3.60 and $3.66 [7]. Cash Flow and Capital Allocation - Cash flow from operating activities was $3.7 billion, an increase of 54% year-over-year [5]. - The company returned $3.6 billion to stockholders through share buybacks and dividends in Q1 FY 2025 [5]. Acquisitions - Cisco completed acquisitions of DeepFactor, Inc. and Robust Intelligence, Inc. in Q1 FY 2025, enhancing its capabilities in cloud-native application security and AI security solutions [6].