Q2 Fiscal Year 2025 Conference Call February 12, 2025 Forward-Looking Statements This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see Cisco's filings with the SEC, including its most recent filings on Fo ...

Financial Data and Key Metrics Changes - Total revenue for Q2 was $14 billion, up 9% year-over-year [32] - Non-GAAP net income was $3.8 billion, with non-GAAP earnings per share at $0.94 [32] - Total annual recurring revenue (ARR) ended at $30.1 billion, an increase of 22% [34] - Total subscription revenue increased 23% to $7.9 billion, representing 56% of total revenue [34] - Non-GAAP gross margin was 68.7%, up 200 basis points year-over-year [37] Business Line Data and Key Metrics Changes - Total product revenue was $10.2 billion, up 11% [32] - Security revenue surged 117%, primarily driven by Splunk offerings [33] - Collaboration revenue grew 1%, while Observability revenue increased by 47% [34] - Networking product orders decreased by 3%, with growth in Wireless and Switching offset by a decline in servers [33] Market Data and Key Metrics Changes - Product orders increased by 29% year-over-year, with organic product orders up 11% [36] - Service Provider & Cloud orders rose by 75%, while Enterprise orders were up 27% [36] - Americas orders increased by 30%, EMEA by 24%, and APJC by 35% [36] Company Strategy and Development Direction - The company is focusing on AI infrastructure, with AI orders surpassing $350 million in Q2 [8] - Cisco's strategy includes significant investments in AI and security, with new product launches like AI Defense and Hypershield [19][21] - The company is committed to returning value to shareholders through dividends and share repurchases, with an additional $15 billion authorized for buybacks [8][39] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across various segments despite geopolitical risks and uncertainties [60] - The company is prepared for potential impacts from proposed U.S. tariffs and has built flexibility into its operations [42][43] - Management expects revenue to ramp up in the second half of the fiscal year, driven by AI-related orders [113] Other Important Information - The company announced an increase in dividends and a commitment to return significant value to shareholders [8][39] - The integration of Splunk is progressing well, with revenue and profitability exceeding expectations [27][102] Q&A Session Summary Question: Federal exposure and potential layoffs - Management indicated that U.S. federal business is less than 10% of total business, with most coming from the DoD, and they do not expect significant changes in performance [49][51] Question: Co-packaged optics and long-term strategy - Management stated they will continue to evolve offerings to meet market demands, including integrated optics [54] Question: Customer spending propensity - Management observed strong demand across geographies and segments, with customers eager to invest in technology despite uncertainties [62] Question: New Nexus switch and AI readiness - Management highlighted the innovation in the new switch and confirmed that demand is driven by customers preparing for AI [70][73] Question: AI orders and revenue conversion - Management expects AI orders to begin converting into revenue in the second half of the fiscal year [113] Question: Splunk performance and security trends - Management clarified that Splunk is growing double digits and is performing in line with expectations [102] Question: Demand response to tariffs - Management noted no evidence of customers pulling demand ahead due to tariffs, as the environment remains fluid [90] Question: Competitive landscape and project announcements - Management acknowledged the competitive landscape but expressed confidence in Cisco's ability to capture emerging opportunities [131]

Cisco Systems showcased robust revenue growth and strategic advancements in AI and cybersecurity.Cisco Systems (CSCO 0.16%), a networking and telecommunications company, recently released its earnings for the second quarter of the fiscal year 2025 on Feb. 12, 2025. The release highlighted a 9% increase in revenue to $14.0 billion, surpassing management's guidance of $13.75 billion to $13.95 billion. The non-GAAP EPS was $0.94, exceeding the guidance range of $0.89 to $0.91. However, the GAAP EPS fell to $0. ...

Cisco Systems (CSCO) reported $13.99 billion in revenue for the quarter ended January 2025, representing a year-over-year increase of 9.4%. EPS of $0.94 for the same period compares to $0.87 a year ago.The reported revenue represents a surprise of +0.91% over the Zacks Consensus Estimate of $13.87 billion. With the consensus EPS estimate being $0.91, the EPS surprise was +3.30%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...

Cisco Systems (CSCO) came out with quarterly earnings of $0.94 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.30%. A quarter ago, it was expected that this seller of routers, switches, software and services would post earnings of $0.87 per share when it actually produced earnings of $0.91, delivering a surprise of 4.60%.Ov ...

Cisco Systems (CSCO) reported fiscal second-quarter results that topped analysts’ expectations and raised its full-year guidance, sending shares higher in extended trading Wednesday. The networking-equipment provider posted revenue of $14 billion, up 9% year-over-year and above the analyst consensus tracked by Visible Alpha. Cisco’s adjusted earnings rose to $3.8 billion, or 94 cents per share, from $3.5 billion, or 87 cents per share, a year earlier, also topping expectations.  Cisco said the gains came a ...

Cisco CEO Chuck Robbins speaking on CNBC's "Squawk Box" outside the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.Cisco shares climbed about 6% in extended trading on Wednesday after the networking hardware maker reported fiscal second-quarter results and guidance that topped Wall Street's expectations.Here's how the company did against LSEG consensus:Earnings per share: 94 cents adjusted vs. 91 cents expectedRevenue: $13.99 billion vs. $13.87 billion expectedRevenue increased 9% in the quart ...

Financial Performance - Q2 FY 2025 revenue was $14.0 billion, a 9% increase year over year, exceeding guidance[6] - GAAP net income was $2.4 billion, down 8% year over year, with GAAP EPS at $0.61, a decrease of 6%[17] - Non-GAAP net income increased by 6% to $3.8 billion, with non-GAAP EPS rising 8% to $0.94[10] - Total revenue for the three months ended January 25, 2025, was $13,991 million, representing a 9% year-over-year increase[31] - For the first half of FY 2025, GAAP net income was $5.139 billion, down 18% from $6.272 billion in the first half of FY 2024[57] - Non-GAAP net income for the first half of FY 2025 was $7.431 billion, reflecting an 8% decrease from $8.066 billion in the first half of FY 2024[57] - The company expects Q3 FY 2025 Non-GAAP EPS guidance to be between $0.90 and $0.92, with GAAP EPS expected between $0.57 and $0.61[62] Revenue Growth - Product orders grew by 29% year over year, with AI Infrastructure orders exceeding $350 million in Q2[6] - Revenue from Security products surged 117% and Observability grew 47% year over year[14] - Security revenue surged by 117% year-over-year to $2,111 million for the three months ended January 25, 2025[35] Operating Metrics - Operating income on a GAAP basis was $3.1 billion, with a GAAP operating margin of 22.3%[16] - Cash flow from operating activities reached $2.2 billion, a 177% increase compared to the same quarter last year[18] - Total revenue for Q2 FY 2025 was $9.111 billion, with a gross margin of 65.1%, compared to $8.217 billion and a gross margin of 64.2% in Q2 FY 2024[54] - Operating income for Q2 FY 2025 was $3.113 billion, reflecting a year-over-year increase of 1%[54] - Non-GAAP gross margin for the first half of FY 2025 was 69.0%, compared to 66.9% in the first half of FY 2024[57] Cash and Assets - Total assets decreased from $124,413 million on July 27, 2024, to $121,375 million on January 25, 2025[38] - Net cash provided by operating activities for the six months ended January 25, 2025, was $5,902 million, compared to $3,179 million for the same period in 2024[40] - Cash, cash equivalents, and restricted cash at the end of the period were $9,508 million, up from $8,842 million at the beginning of the period[40] Performance Obligations - Remaining Performance Obligations (RPO) totaled $41.3 billion, up 16%, with 51% expected to be recognized as revenue in the next 12 months[19] - Remaining performance obligations (RPO) increased by 16% year-over-year to $41,268 million as of January 25, 2025[42] - The company expects to recognize 51% of total RPO as revenue over the next 12 months[42] - Total deferred revenue as of January 25, 2025, was $27,795 million, up from $25,771 million a year earlier[44] Acquisitions and Investments - Cisco closed the acquisition of Deeper Insights AI Ltd., enhancing its AI capabilities[22] - The quarterly dividend was increased by 3% to $0.41 per share, with an additional $15 billion authorized for stock repurchases[11] Tax and Expenses - The effective tax rate for Q2 FY 2025 was 15.9%, slightly down from 16.7% in Q2 FY 2024[60] - Share-based compensation expense for Q2 FY 2025 was $151 million, up from $139 million in Q2 FY 2024[54] - The company reported a significant increase in acquisition-related costs, totaling $17 million in Q2 FY 2025 compared to $1 million in Q2 FY 2024[54] Strategic Focus and Risks - Cisco is providing guidance for Q3 FY 2025 and full year FY 2025, indicating potential risks and uncertainties in customer demand and financial performance[65] - The company emphasizes the importance of non-GAAP measures, which exclude share-based compensation and other costs, to evaluate its financial results[66] - Cisco's management uses non-GAAP measures for internal budgeting, which may exclude significant litigation settlements and costs related to the Russia-Ukraine war[70] - The company is focused on leveraging AI-powered solutions to enhance productivity and strengthen digital resilience for its customers[71] - Cisco acknowledges the limitations of non-GAAP measures, which may not reflect all amounts associated with its results of operations[67] - The company is subject to various risks, including supply constraints and increased competition in the data center market[65] - Cisco's future performance may be influenced by global economic conditions and geopolitical uncertainties[65] - The company aims to maintain leadership in networking and services while managing financial risks during economic downturns[65]

Cisco Systems Inc CSCO will be reporting its second-quarter earnings on Wednesday. Wall Street expects 91 cents in EPS and $13.87 billion in revenues as the company reports after market hours.The stock is up 24.88% over the past year, 5.63% year-to-date.Cisco Positioning Itself At The Heart Of AI ActionCisco is gearing up for its earnings report with a wave of AI-driven innovations that could give its stock a turbocharged jolt. The tech giant recently launched its new smart switches featuring intelligent ne ...

Cisco Systems, Inc. CSCO will release its second-quarter financial results after the closing bell, on Wednesday, Feb. 12, 2025.Analysts expect the California-based company to report quarterly earnings at 91 cents per share, up from 87 cents per share in the year-ago period. Cisco projects quarterly revenue of $13.87 billion, compared to $12.79 billion a year earlier, according to data from Benzinga Pro.On Feb. 10, the company introduced an AI solution in collaboration with Mistral AI, signaling a major adva ...