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Oct 26, 2024
Cisco Q1 2025 Earnings Report
Cisco reported a decrease in revenue but demonstrated strong profitability with GAAP and non-GAAP gross margins above guidance, and broad-based acceleration in product orders.
Key Takeaways
Cisco reported Q1 2025 results with revenue at $13.8 billion, a 6% decrease year-over-year. GAAP EPS was $0.68 and non-GAAP EPS was $0.91. The company saw strong profitability with gross margins above guidance.
Product orders increased by 20% year-over-year, or 9% excluding Splunk.
Revenue reached $13.8 billion, at the higher end of the guidance range.
GAAP gross margin was 65.9%, and non-GAAP gross margin was 69.3%, both exceeding guidance.
GAAP EPS stood at $0.68, while non-GAAP EPS was $0.91, both above guidance.
Cisco
Cisco
Cisco Revenue by Segment
Cisco Revenue by Geographic Location
Revenue by Segment
Networking Revenue
CapyFin.comSecurity Revenue
CapyFin.comCollaboration Revenue
CapyFin.comObservability Revenue
CapyFin.comServices Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPJC Revenue
CapyFin.com Forward Guidance
Cisco provided guidance for Q2 FY 2025 with revenue expected between $13.75 billion and $13.95 billion, and non-GAAP EPS between $0.89 and $0.91. For FY 2025, revenue is expected to be between $55.3 billion and $56.3 billion, with non-GAAP EPS between $3.60 and $3.66.
Positive Outlook
- Revenue is expected to be between $13.75 billion and $13.95 billion for Q2 FY 2025.
- Non-GAAP gross margin is projected to be 68% - 69% for Q2 FY 2025.
- Non-GAAP operating margin is anticipated to be 33.5% - 34.5% for Q2 FY 2025.
- Non-GAAP EPS is forecasted to be $0.89 - $0.91 for Q2 FY 2025.
- Full year revenue is projected to be between $55.3 billion and $56.3 billion.
Challenges Ahead
- GAAP gross margin is expected to be 64.5% - 65.5% for Q2 FY 2025.
- GAAP operating margin is projected to be 20% - 21% for Q2 FY 2025.
- GAAP EPS is forecasted to be $0.51 - $0.56 for Q2 FY 2025.
- Full year GAAP EPS is projected to be $2.26 - $2.38.
- Guidance does not include effects of future acquisitions/divestitures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income