"In Q2, we once again returned a total of $2.8 billion in value through dividends and share repurchases."
— Chuck Robbins, CEO
03Detailed Report
CSCO
Cisco Systems Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
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Executive Summary
In Q2 2024, Cisco Systems Inc (CSCO) reported a revenue of $12.791 billion, reflecting a 6% decrease year-over-year. The decline was anticipated given macroeconomic uncertainties and inventory digestion challenges faced by enterprise and service provider customers. Despite the revenue drop, Cisco demonstrated strong operating leverage with an impressive non-GAAP operating margin of 33%. Management emphasized ongoing strategic transformation towards software subscriptions, showcasing ARR growth of 6% and a notable shift towards recurring revenue streams.
Notably, management maintained a stable outlook and raised its quarterly dividend to $0.40 per share, indicating confidence in the company’s cash flow generation and commitment to returning value to shareholders. The pending acquisition of Splunk is positioned as a catalyst for significant software growth by adding approximately $4 billion in ARR once completed, although it remains subject to regulatory approval.
Cash Flow and Balance Sheet
- Operating Cash Flow: $800 million
- Total Cash and Investments: $25.7 billion
- Shareholder Returns: $2.8 billion returned through dividends and share repurchases
Management's guidance indicates Q3 revenue expectations between $12.1 billion to $12.3 billion, reflecting cautious optimism as it navigates inventory absorption and macroeconomic uncertainties.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12.79B
-12.22%
-12.80%
Gross Profit
8.39B
-9.10%
-12.19%
Operating Income
3.11B
-21.24%
-27.32%
Net Income
2.63B
-18.00%
-27.60%
EPS
0.65
-17.72%
-27.78%
Key Financial Ratios
Gross Profit Margin
Excellent
65.60%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
24.30%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Excellent
20.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Weak
2.60%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.70%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.27
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.27
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
20.07x
P/E ratio in line with market averages
Price to Book
Premium
4.57x
Trading at premium to book value, reflects strong intangibles or growth
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