NASDAQ$CSCO

Cisco Systems Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Cisco reported its strongest first quarter results in history, driven by investments in AI, Security, Cloud, and Observability.

Cisco reported a strong start to fiscal year 2024 with record Q1 results. Revenue reached $14.7 billion, an 8% increase year-over-year, with GAAP EPS at $0.89 and Non-GAAP EPS at $1.11. The company is confident in future growth opportunities fueled by AI, Security, Cloud, and Observability.

  • Revenue was $14.7 billion, up 8% year over year.
  • GAAP EPS was $0.89, up 37% year over year.
  • Non-GAAP EPS was $1.11, up 29% year over year.
  • Total annualized recurring revenue (ARR) at $24.5 billion, up 5% year over year.

Headline financials

Total Revenue

$14.7B

Previous: $13.6B+7.6%
EPS (adj)

$1.11

Previous: $0.86+29.1%
Non-GAAP Gross Margin

67.1%

Previous: 63.0%+6.5%
Non-GAAP Operating Margin

36.6%

Previous: 31.8%+15.1%
Gross Margin GAAP

65.2%

Previous: 61.2%+6.5%
Operating Margin GAAP

29.2%

Previous: 26.0%+12.3%
Quarterly Dividend

$0.39

Previous: $0.38+2.6%
Capital Expenditures

-$134M

Previous: -$176M+23.9%
Free Cash Flow

$3.5B

Previous: $2.49B+40.5%
Net Income

$3.64B

Previous: $2.67B+36.3%
Operating Income

$4.28B

Previous: $3.54B+20.8%
Gross Profit

$9.56B

Previous: $8.35B+14.5%
Cash & Equivalents

$9.6B

Previous: $7.29B+31.7%
Total Assets

$98.8B

Previous: $93.1B+6.2%
R&D Expense

$1.91B

No prior period
Stock-Based Comp

$661M

Previous: $496M+33.3%

Revenue & EPS history

Cisco · Revenue · Quarterly

$14.7B

Q1 2024+7.6%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Cisco · $14.7B total across 5 segments · Q1 2024

  • Networking
    $8.82B+32.0%
  • Services
    $3.53B+4.2%
  • Collaboration
    $1.12B+2.9%
  • Security
    $1.01B+4.0%
  • Observability
    $190M-1.6%

Forward guidance

Cisco provided guidance for Q2 FY 2024 with revenue expected to be in the range of $12.6 billion to $12.8 billion and non-GAAP EPS between $0.82 and $0.84. For fiscal year 2024, revenue is projected to be between $53.8 billion and $55.0 billion, with non-GAAP EPS in the range of $3.87 to $3.93.

Tailwinds

  • Revenue: $12.6 billion - $12.8 billion (Q2 FY 2024)
  • Non-GAAP gross margin rate: 65% – 66% (Q2 FY 2024)
  • Non-GAAP operating margin rate: 31.5% – 32.5% (Q2 FY 2024)
  • Non-GAAP EPS: $0.82 – $0.84 (Q2 FY 2024)
  • Revenue: $53.8 billion - $55.0 billion (FY 2024)

Headwinds

  • GAAP EPS: $0.59 - $0.64 (Q2 FY 2024)
  • Cisco saw a slowdown of new product orders in the first quarter of fiscal 2024
  • Customers are currently focused on installing and implementing products
  • One to two quarters of shipped product orders still waiting to be implemented
  • GAAP EPS will be $2.97 to $3.08 (FY 2024)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.2%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.3%

Avg return

30 days after

51%

37 / 72 earnings

Positive

+12.3%

Q3 2013

Best reaction

-17.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.5%-0.9%+5.3%
Q2 2026-12.3%-10.2%-8.4%
Q1 2026-2.2%+4.6%+5.2%
Q4 2025+0.3%-5.2%-5.5%
Q3 2025+4.8%+3.5%+4.6%
Q2 2025+2.1%+3.3%-3.2%
Q1 2025-1.3%-2.4%-0.2%
Q4 2024+7.0%+10.2%+9.8%
Q3 2024-1.2%-3.7%-6.7%
Q2 2024-1.2%-2.4%-1.4%
Q1 2024-9.6%-9.2%-6.2%
Q4 2023+2.6%+3.9%+5.0%
Q3 2023+2.7%+4.0%+11.0%
Q2 2023+6.9%+6.4%+5.2%
Q1 2023+3.8%+6.1%+6.5%
Q4 2022+5.6%+2.0%-7.4%
Q3 2022-17.5%-14.3%-14.2%
Q2 2022+2.8%+5.4%+3.1%
Q1 2022-5.9%-4.2%+6.1%
Q4 2021+2.2%+4.5%+1.5%
Q3 2021-0.2%+0.9%-1.6%
Q2 2021-3.5%-3.4%-0.3%
Q1 2021+5.3%+6.5%+12.7%
Q4 2020-9.5%-10.8%-15.5%
Q3 2020+1.5%+4.3%+4.3%
Q2 2020-3.7%-4.4%-23.4%
Q1 2020-7.2%-6.7%-6.3%
Q4 2019-12.3%-8.0%-5.1%
Q3 2019+7.5%+7.7%+5.2%
Q2 2019+1.1%+3.2%+11.1%
Q1 2019+3.7%+1.4%+1.6%
Q4 2018+2.6%+5.0%+7.7%
Q3 2018-4.4%-3.8%-2.7%
Q2 2018+6.9%+7.5%+9.2%
Q1 2018+5.4%+7.2%+12.2%
Q4 2017-3.3%-4.4%+1.1%
Q3 2017-8.5%-7.9%-7.8%
Q2 2017+4.0%+4.4%+5.9%
Q1 2017-5.2%-5.2%-3.5%
Q4 2016-2.1%-1.6%-0.9%
Q3 2016+3.5%
Q2 2016+9.0%
Q1 2016-5.8%
Q4 2015+2.4%
Q3 2015-0.6%
Q2 2015+7.2%
Q1 2015+2.1%
Q4 2014-2.4%
Q3 2014+5.8%
Q2 2014-1.9%
Q1 2014-9.9%
Q4 2013-7.0%
Q3 2013+12.3%
Q2 2013+0.1%
Q1 2013+4.7%
Q4 2012+10.8%
Q3 2012-10.2%
Q2 2012-1.0%
Q1 2012-0.4%
Q4 2011+2.0%
Q3 2011-0.1%
Q2 2011-1.2%
Q1 2011+0.3%
Q4 2008-0.4%
Q4 2010-0.4%
Q3 2010+1.5%
Q3 2009+1.5%
Q2 2009+1.2%
Q2 2010+1.2%
Q1 2010-1.7%
Q4 2009-1.7%
Q1 2009-1.7%

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