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Jul 27, 2024
Cisco Q4 2024 Earnings Report
Cisco's Q4 2024 earnings were reported, revealing a mix of growth in key areas and overall revenue decline.
Key Takeaways
Cisco reported Q4 FY24 revenue of $13.6 billion, a 10% decrease year-over-year. GAAP EPS was $0.54, a 44% decrease, and non-GAAP EPS was $0.87, a 24% decrease. The company saw product order growth and strong margins, with software and recurring revenue metrics showing solid growth, enhanced by the inclusion of Splunk.
Cisco's Q4 revenue reached $13.6 billion, above the high end of guidance.
GAAP gross margin was 64.4%, and non-GAAP gross margin was 67.9%.
Total subscription revenue was $27.4 billion, representing 51% of total revenue.
Total annualized recurring revenue (ARR) was $29.6 billion, up 22% year-over-year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cisco provided guidance for Q1 FY25 with revenue between $13.65 billion and $13.85 billion and non-GAAP EPS between $0.86 and $0.88. For FY25, revenue is expected to be between $55.0 billion and $56.2 billion, with non-GAAP EPS between $3.52 and $3.58.
Positive Outlook
- Revenue: $13.65 billion - $13.85 billion (Q1 FY25)
- Non-GAAP gross margin: 67% - 68% (Q1 FY25)
- Non-GAAP operating margin: 32% - 33% (Q1 FY25)
- Non-GAAP EPS: $0.86 - $0.88 (Q1 FY25)
- Revenue: $55.0 billion - $56.2 billion (FY25)
Challenges Ahead
- GAAP EPS: $0.35 - $0.42 (Q1 FY25)
- Restructuring charges of up to $1 billion
- Approximately $700 million to $800 million of restructuring charges expected in Q1 FY25
- Effective tax provision rate of approximately 17% for GAAP (Q1 FY25 and FY25)
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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