NASDAQ$CSCO

Cisco Systems Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Cisco reported a decrease in revenue but demonstrated strong profitability with GAAP and non-GAAP gross margins above guidance, and broad-based acceleration in product orders.

Cisco reported Q1 2025 results with revenue at $13.8 billion, a 6% decrease year-over-year. GAAP EPS was $0.68 and non-GAAP EPS was $0.91. The company saw strong profitability with gross margins above guidance.

  • Product orders increased by 20% year-over-year, or 9% excluding Splunk.
  • Revenue reached $13.8 billion, at the higher end of the guidance range.
  • GAAP gross margin was 65.9%, and non-GAAP gross margin was 69.3%, both exceeding guidance.
  • GAAP EPS stood at $0.68, while non-GAAP EPS was $0.91, both above guidance.

Headline financials

Total Revenue

$13.8B

Previous: $14.7B-5.6%
EPS

$0.68

Previous: $1.11-38.7%
Non-GAAP Gross Margin

69.3%

Previous: 67.1%+3.3%
Non-GAAP Operating Margin

34.1%

Previous: 36.6%-6.8%
Gross Margin GAAP

65.9%

Previous: 65.2%+1.1%
Operating Margin GAAP

17.0%

Previous: 29.2%-41.8%
Quarterly Dividend

$0.40

Previous: $0.39+2.6%
Product Revenue

$10.1B

No prior period
Services Revenue

$3.73B

No prior period
Remaining Performance Obligations

$40B

No prior period
Deferred Revenue

$27.5B

No prior period
Capital Expenditures

-$217M

Previous: -$134M-61.9%
Free Cash Flow

$2.49B

Previous: $3.5B-28.8%
Net Income

$2.71B

Previous: $3.64B-25.5%
Operating Income

$2.36B

Previous: $4.28B-44.9%
Gross Profit

$9.12B

Previous: $9.56B-4.6%
Cash & Equivalents

$9.07B

Previous: $9.6B-5.6%
Total Assets

$123B

Previous: $98.8B+24.9%
R&D Expense

$2.29B

Previous: $1.91B+19.5%
Stock-Based Comp

$827M

Previous: $661M+25.1%

Revenue & EPS history

Cisco · Revenue · Quarterly

$13.8B

Q1 2025-5.6%vs Q1 2024
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Cisco · $15.8B total across 5 segments · Q3 2026

  • Networking
    $8.82B
  • Services
    $3.72B
  • Security
    $2.01B
  • Collaboration
    $1.02B
  • Observability
    $269M

Forward guidance

Cisco provided guidance for Q2 FY 2025 with revenue expected between $13.75 billion and $13.95 billion, and non-GAAP EPS between $0.89 and $0.91. For FY 2025, revenue is expected to be between $55.3 billion and $56.3 billion, with non-GAAP EPS between $3.60 and $3.66.

Tailwinds

  • Revenue is expected to be between $13.75 billion and $13.95 billion for Q2 FY 2025.
  • Non-GAAP gross margin is projected to be 68% - 69% for Q2 FY 2025.
  • Non-GAAP operating margin is anticipated to be 33.5% - 34.5% for Q2 FY 2025.
  • Non-GAAP EPS is forecasted to be $0.89 - $0.91 for Q2 FY 2025.
  • Full year revenue is projected to be between $55.3 billion and $56.3 billion.

Headwinds

  • GAAP gross margin is expected to be 64.5% - 65.5% for Q2 FY 2025.
  • GAAP operating margin is projected to be 20% - 21% for Q2 FY 2025.
  • GAAP EPS is forecasted to be $0.51 - $0.56 for Q2 FY 2025.
  • Full year GAAP EPS is projected to be $2.26 - $2.38.
  • Guidance does not include effects of future acquisitions/divestitures.

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 2025

Historical avgQ1 2025

-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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