Cisco Systems Inc delivered performance in Q3 2024 characterized by solid operational execution, marked by a transformative acquisition and a strategic pivot towards subscription-based revenues. The company reported total revenue of $12.7 billion, reflecting a year-over-year decline of 13% primarily driven by inventory digestion and macroeconomic headwinds. Gross margins exceeded expectations, settling at 68.3%, attributed to favorable product mix and disciplined expense management. Management highlighted the successful integration of Splunk, which is expected to significantly enhance Cisco's software capabilities, contributing over $4 billion in annualized recurring revenue. This fiscal quarter underscored Cisco's commitment to innovation, as evidenced by the introduction of new security products and expansion in AI infrastructure, reinforcing its growth trajectory for the future.