Cisco Systems Reports First Quarter Earnings

On November 13, 2024, technology giant Cisco Systems, Inc. released its financial results for the fiscal first quarter of 2025, which ended on October 26, 2024. The company declared revenue of $13.8 billion, in line with the higher end of its guidance range. The first quarter showcased significant profitability with GAAP gross margin at 65.9% and non-GAAP gross margin at 69.3%, exceeding the forecast.

Chuck Robbins, the Chair and CEO of Cisco, expressed optimism regarding the company’s strong start in fiscal 2025. He highlighted the ongoing investments by customers in critical infrastructure, particularly in preparation for artificial intelligence (AI). Scott Herren, the CFO of Cisco, emphasized the company’s focus on operational efficiency, strategic investments for growth, and its commitment to innovation.

In terms of GAAP results, Cisco reported a net income of $2.7 billion, which represented a 25% decrease compared to the previous year, with GAAP earnings per share (EPS) at $0.68. Non-GAAP net income stood at $3.7 billion, down 19%, with non-GAAP EPS at $0.91, an 18% decline year-over-year.

Looking ahead, Cisco provided guidance for the second quarter of fiscal 2025, anticipating revenue between $13.75 billion and $13.95 billion. The company also projected non-GAAP gross margin between 68% and 69%, non-GAAP operating margin between 33.5% and 34.5%, and non-GAAP EPS in the range of $0.89 to $0.91. For the full fiscal year 2025, Cisco estimated revenue to be in the range of $55.3 billion to $56.3 billion and non-GAAP EPS between $3.60 and $3.66.

In the first quarter of fiscal 2025, Cisco returned approximately $3.6 billion to stockholders through share buybacks and dividends. The company declared a quarterly dividend of $0.40 per common share, payable on January 22, 2025, to stockholders of record as of January 3, 2025. Cisco’s cash flow from operating activities in the first quarter amounted to $3.7 billion, a significant increase from the same period in the prior year.

The financial statement details for the first quarter include insights into revenue by geographic segment, product performance, gross margin percentages, operating expenses, income taxes, net income, and more. Additionally, Cisco highlighted its acquisitions during the quarter, underlining strategic investments in companies like DeepFactor, Inc., and Robust Intelligence, Inc.

Cisco will host a conference call on November 13, 2024, at 1:30 p.m. Pacific Time to discuss the financial results and guidance provided. The call will be accessible by dialing 1-888-848-6507 (United States) or 1-212-519-0847 (international). A replay will also be available for interested parties.

The financial report underscores Cisco’s commitment to operational excellence, strategic investments, and its continued focus on delivering value to shareholders amidst a dynamic business environment.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Cisco Systems’s 8K filing here.

About Cisco Systems

Cisco Systems, Inc designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization.