Cisco ( (CSCO) ) has released its Q1 earnings. Here is a breakdown of the information Cisco presented to its investors.
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Cisco Systems, Inc., a global leader in technology and networking solutions, connects the world through secure and innovative platforms, serving a wide array of industries with a focus on transformation and sustainability.
In its first quarter of fiscal year 2025, Cisco reported a revenue of $13.8 billion, aligning with the high end of its guidance range. The company experienced a broad-based acceleration in product orders, indicating a normalization in demand, although revenue saw a 6% decline compared to the previous year.
Key financial metrics reveal that Cisco’s GAAP gross margin stood at 65.9%, with a non-GAAP gross margin of 69.3%, both surpassing guidance expectations. Earnings per share were reported at $0.68 GAAP and $0.91 non-GAAP, reflecting a decrease from the prior year. Despite these declines, Cisco’s cash flow from operating activities increased by 54%, reaching $3.7 billion, showcasing robust financial health. Geographically, revenue performances varied, with notable growth in security and observability products.
Looking ahead, Cisco provided Q2 guidance with expected revenues between $13.75 billion and $13.95 billion, and full-year projections anticipate revenues from $55.3 billion to $56.3 billion. The company remains focused on strategic investments to drive innovation, particularly in AI infrastructure, positioning itself to capitalize on emerging opportunities in the tech landscape.
Cisco’s management maintains a positive outlook, emphasizing solid execution and operating discipline. The company aims to continue leveraging its extensive product portfolio to meet evolving customer needs and sustain growth in the rapidly transforming technology sector.
