"We believe that the value of our portfolio is greater than ever, and recent IT spending surveys show Cisco as the only net share gainer in large network budgets." - Chuck Robbins
— Chuck Robbins
03Detailed Report
CSCO
Cisco Systems Inc
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
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Executive Summary
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.
Key Performance Indicators
Revenue
Decreasing
12.70B
QoQ: -0.70% | YoY: -16.45%
Gross Profit
Decreasing
8.09B
63.72% margin
QoQ: -3.55% | YoY: -16.97%
Operating Income
Decreasing
2.77B
QoQ: -11.00% | YoY: -34.96%
Net Income
Decreasing
1.89B
QoQ: -28.40% | YoY: -52.35%
EPS
Decreasing
0.47
QoQ: -27.69% | YoY: -51.55%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $12.7 billion, down 13% YoY
- Gross Profit: $8.1 billion, with a gross margin ratio of 68.3%, up 310 basis points YoY.
- Operating Income: $2.77 billion (operating margin at 34.2%), demonstrating a commitment to spend management amidst high investment in integration efforts.
- Net Income: $1.89 billion, translating into an EPS of $0.47, down from $0.97 in the same quarter last year.
- Annual Recurring Revenue (ARR): $29.2 billion, growing 22% attributed predominantly to the subscription model.
Management commentary points to stable win rates and performance across critical product verticals such as security (+36% including Splunk) and observability (+27%).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
12.70B
-16.45%
-0.70%
Gross Profit
8.09B
-16.97%
-3.55%
Operating Income
2.77B
-34.96%
-11.00%
Net Income
1.89B
-52.35%
-28.40%
EPS
0.47
-51.55%
-27.69%
Key Financial Ratios
Gross Profit Margin
Excellent
63.70%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
21.80%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
14.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.53%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.12%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.90
Current ratio below safe levels, potential liquidity risk