Cisco Systems, widely recognized as Cisco, is a prominent American multinational technology company headquartered in San Jose, California. Founded in 1984 by Stanford University computer scientists Leonard Bosack and Sandy Lerner. Cisco has excelled in developing networking hardware, software, telecommunications equipment, and other high-tech services and products. Over time, Cisco has become a symbol of technological innovation. Also, the company provides solutions for the Internet of Things (IoT), domain security, videoconferencing, and energy management.
Cisco has a strong global presence and offers many products, helping to connect the world with advanced networking technologies. Their commitment to excellence and improving connectivity has made them a leader in the tech industry.
Cisco Fiscal Q2 2025
Cisco (CSCO) reported its results for the second quarter, which ended on January 25, 2025.
The company had revenue of $14 billion for the quarter. Cisco’s GAAP net income was $2.4 billion, or $0.61 per share, while its non-GAAP net income was $3.8 billion, or $0.94 per share. Moreover, both revenue and EPS were above guidance and above estimates.
Highlights:
- Revenue was $14 billion which grew 9% year over year.
- GAAP gross margin of 65.1% and non-GAAP gross margin of 68.7%
- GAAP EPS of $0.61 and non-GAAP EPS of $0.94. Non-GAAP EPS increased 8% year over year
- Quarterly dividend increased to $0.41 per share, up 3%, and additional $15 billion authorized for stock repurchases
- Returned $2.8 billion to shareholders, with an increase in the dividend and share repurchase authorization announced.
Growing demand for Cisco technologies: Product orders up 29% year-over-year, 11% excluding Splunk, with growth across all geographies and customer markets.
AI infrastructure orders: Orders exceeded $350 million, totaling approximately $700 million for the first half of fiscal year 2025, and on track to exceed $1 billion for the year.
Guidance
For Q3 FY 2025:
- Revenue is expected to be between $13.9 billion and $14.1 billion.
- GAAP EPS is expected to be between $0.57 and $0.61.
- Non-GAAP EPS is expected to be between $0.90 and $0.92.
For FY 2025:
- Revenue for the whole year is expected to be between $56 billion and $56.5 billion.
- The company’s GAAP EPS is expected to be between $2.40 and $2.52.
- Non-GAAP EPS is expected to be between $3.68 and $3.74.
Boards Statements
According to Chuck Robbins, the chair and CEO of Cisco, the company’s strong quarterly results were driven by accelerating customer demand for its technology. Also, he highlighted that as AI becomes more pervasive, Cisco is well positioned to help customers scale their network infrastructure, increase data capacity requirements, and adopt best-in-class AI security.
Scott Herren, CFO of Cisco, noted that the second quarter saw another period of solid execution, with revenue and EPS surpassing guidance ranges. However, Splunk’s performance met expectations on the top line and was accretive to the second quarter’s non-GAAP EPS earlier than planned. Herren also mentioned that Cisco’s strong cash flows have enabled an increase in the annual dividend and overall share repurchase authorization.
Impact on the Stock Market
Cisco’s strong earnings report and positive guidance led to a 6.6% rise in its stock price during pre-market trading. Investors reacted positively to the company’s revenue and earnings surpassing expectations, as well as the increased dividend and stock repurchase authorization.
In addition, Cisco’s stock hit a new all-time high after the release of its positive earnings report.
