The earnings call presented a strong start to the fiscal year with solid revenue and earnings, significant growth in product orders, and successful integration of Splunk. However, there were challenges, such as a decline in networking revenue and delays in U.S. federal spending impacting security growth.

Company Guidance

During Cisco's Q1 2025 earnings call, the company provided optimistic guidance for the upcoming quarters, leveraging a strong start to the fiscal year with $13.8 billion in revenue, outperforming the high end of their guidance range. Cisco reported a significant 20% year-over-year growth in product orders, with organic growth at 9%, and achieved a remarkable non-GAAP EPS of $0.91, supported by a non-GAAP gross margin of 69.3%, the highest in over two decades. Their annualized recurring revenue reached $29.9 billion, marking a 22% increase, with subscription revenue now comprising 57% of total revenue. For Q2 2025, Cisco anticipates revenue between $13.75 billion to $13.95 billion and a non-GAAP EPS range of $0.89 to $0.91. The full fiscal year 2025 outlook projects revenue between $55.3 billion to $56.3 billion, with a non-GAAP EPS ranging from $3.60 to $3.66, assuming a 19% effective tax rate. Cisco is optimistic about exceeding $1 billion in AI orders this fiscal year from web-scale customers, driven by the combined strength of their networking and security portfolios, enhanced by the recent integration of Splunk.

Strong Revenue and Earnings Performance

Cisco delivered $13.8 billion in revenue for Q1 FY25, at the high end of guidance. Non-GAAP EPS of $0.91 also exceeded expectations.

Significant Growth in Product Orders

Product orders grew 20% year-over-year in Q1, with 9% organic growth, surpassing previous growth of 14% in the prior quarter.

Enterprise and Service Provider Order Growth

Enterprise product orders increased by 33% and service provider and cloud orders grew by 28%, including triple-digit growth in web scale.

Security and Observability Segments

Security orders more than doubled, driven by Splunk, and observability orders were up by high single digits, with significant contributions from ThousandEyes and Splunk Observability.

Successful Integration of Splunk

Integration of Splunk has progressed well, with several joint products launched and a significant number of Cisco partners trained on Splunk solutions.

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Cisco Systems (CSCO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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CSCO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 12, 2025	2025 (Q2)	0.91 / -	0.87	―	―	―
Nov 13, 2024	2025 (Q1)	0.87 / 0.91	1.11	-18.02% (-0.20)
Aug 14, 2024	2024 (Q4)	0.85 / 0.87	1.14	-23.68% (-0.27)
May 15, 2024	2024 (Q3)	0.83 / 0.88	1	-12.00% (-0.12)
Feb 14, 2024	2024 (Q2)	0.84 / 0.87	0.88	-1.14% (-0.01)
Nov 15, 2023	2024 (Q1)	1.03 / 1.11	0.86	29.07% (+0.25)
Aug 16, 2023	2023 (Q4)	1.06 / 1.14	0.83	37.35% (+0.31)
May 17, 2023	2023 (Q3)	0.97 / 1.00	0.87	14.94% (+0.13)
Feb 15, 2023	2023 (Q2)	0.85 / 0.88	0.84	4.76% (+0.04)
Nov 16, 2022	2023 (Q1)	0.83 / 0.86	0.82	4.88% (+0.04)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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CSCO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 13, 2024	$59.18	$57.92	-2.13%
Aug 14, 2024	$45.10	$48.16	+6.78%
May 15, 2024	$48.87	$47.56	-2.68%
Feb 14, 2024	$49.07	$47.88	-2.43%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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