$CSCO (+2.41%) | Cisco Q4'24 Earnings Highlights

🔹 Non-GAAP EPS: $0.87 (Est. $0.85) 🟢

🔹 Revenue: $13.6B (Est. $13.53B) 🟡; DOWN -10% YoY

Q1'25 Guidance

🔹 Revenue: $13.65 billion - $13.85 billion (Est. $13.71 billion) 🟡

🔹 Non-GAAP EPS: $0.86 - $0.88 (Est. $0.85) 🟢

FY'25 Guidance

🔹 Revenue: $55.0 billion - $56.2 billion (Est. $55.68 billion) 😑

🔹 Non-GAAP EPS: $3.52 - $3.58 (Est. $3.56) 🟡

Segment Revenue:

🔹 Product Revenue: DOWN -15% YoY

🔹 Services Revenue: UP +6% YoY

🔹 Security Revenue: UP +81% YoY

🔹 Observability Revenue: UP +41% YoY

🔹 Networking Revenue: DOWN -28% YoY

Geographic Revenue:

🔹 Americas: DOWN -11% YoY

🔹 EMEA: DOWN -11% YoY

🔹 APJC: DOWN -6% YoY

Margins:

🔹 GAAP Gross Margin: 64.4% (Prev. 64.1%)

🔹 Non-GAAP Gross Margin: 67.9% (Prev. 65.9%)

🔹 GAAP Operating Margin: 19.2% (DOWN from 25.8% YoY)

🔹 Non-GAAP Operating Margin: 32.5% (DOWN from 38.5% YoY)

Operational Metrics:

🔹 Total Annualized Recurring Revenue (ARR): $29.6 billion; UP +22% YoY

🔹 Total Software Revenue: $18.4 billion; UP +9% YoY

🔹 Software Subscription Revenue: $16.4 billion; UP +15% YoY

🔹 Cash Flow from Operations: $3.7 billion; DOWN -37% YoY

Other Metrics:

🔹 Total Subscription Revenue: $27.4 billion

🔹 Cash Flow from Operations: $10.9 billion; DOWN -45% YoY

CEO Chuck Robbins' Commentary:

🔸 "We delivered a strong close to fiscal 2024, seeing steady customer demand with order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI."

CFO Scott Herren's Insight:

🔸 "Revenue, gross margin, and EPS in Q4 were at the high end or above our guidance range, demonstrating our operating discipline. We remain focused on growth and consistent execution as we invest in AI, cloud, and cybersecurity, while maintaining capital returns."

Dividend Update:

🔹 Quarterly Dividend: $0.40 per share, payable on October 23, 2024.