NASDAQ$CSCO
Cisco Systems Inc · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Cisco's Q3 2024 performance reflected revenue decrease, strong profitability, and business model transformation enhanced by Splunk acquisition.
Cisco reported Q3 2024 revenue of $12.7 billion, a 13% year-over-year decrease, but aligned with expectations. GAAP EPS was $0.46 and non-GAAP EPS was $0.88. The company's profitability remained strong with a GAAP gross margin of 65.1% and a non-GAAP gross margin of 68.3%. The acquisition of Splunk contributed $413 million in revenue and further enhanced the business model.
- Revenue was $12.7 billion, a 13% decrease year-over-year, in line with expectations.
- GAAP gross margin was 65.1% and non-GAAP gross margin was 68.3%, demonstrating strong profitability.
- Total subscription revenue reached $6.9 billion, representing 54% of total revenue.
- Total annualized recurring revenue (ARR) was $29.2 billion, including $4.2 billion from Splunk, a 22% increase year-over-year.
Headline financials
Revenue & EPS history
Cisco · Revenue · Quarterly
$12.7B
Revenue by segment
Cisco · $15.8B total across 5 segments · Q3 2026
- Networking$8.82B—55.7%
- Services$3.72B—23.5%
- Security$2.01B—12.7%
- Collaboration$1.02B—6.5%
- Observability$269M—1.7%
Forward guidance
Cisco provided guidance for Q4 FY 2024, projecting revenue between $13.4 billion and $13.6 billion, and non-GAAP EPS between $0.84 and $0.86. The guidance includes $950 million to $1 billion in revenue from Splunk but also includes a negative impact to non-GAAP EPS of approximately ($0.03) due to interest from financing the acquisition.
Tailwinds
- Revenue is expected to be between $13.4 billion and $13.6 billion.
- Non-GAAP gross margin rate is projected to be 66.5% – 67.5%.
- Non-GAAP operating margin rate is expected to be 31.5% – 32.5%.
- Non-GAAP EPS is projected to be $0.84 – $0.86.
- Splunk is expected to contribute $950 million to $1 billion in revenue.
Headwinds
- Includes a negative impact to non-GAAP EPS of approximately ($0.03).
- Interest impact from financing the acquisition more than offsets the operating benefit.
- GAAP EPS will be $0.46 to $0.51 for the fourth quarter of fiscal 2024.
- Assumes an effective tax provision rate of approximately 18% for GAAP and non-GAAP results.
- Guidance does not include the effects of any future acquisitions/divestitures, asset impairments, Russia-Ukraine war costs, restructurings, (gains) and losses on investments and significant tax matters or other events, which may or may not be significant unless specifically stated.
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 Q3 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
| Quarter | Report date | Reaction (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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