"With Splunk now part of Cisco, we believe we have an unmatched capability to unlock the full power of the network with market leading security and observability solutions to deliver even greater value for our customers." - Chuck Robbins, CEO
— Chuck Robbins
03Detailed Report
CSCO
Cisco Systems Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
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Executive Summary
Cisco Systems Inc closed fiscal 2024 with strong financial results, reporting $13.6 billion in revenue for Q4 2024, which exceeded the high end of guidance. Despite a 10% decline year-over-year, the company achieved a gross margin of 67.5%, the highest in 20 years, supported by the integration of Splunk. Management highlighted solid demand across product categories, especially in security and collaboration, indicating a positive trajectory as inventory digestion subsides. CEO Chuck Robbins emphasized Cisco's commitment to investing in AI and cybersecurity, positioning the company as a key player in these growing areas.
Key Performance Indicators
Revenue
Decreasing
13.64B
QoQ: 7.40% | YoY: -10.27%
Gross Profit
Decreasing
8.78B
64.37% margin
QoQ: 8.49% | YoY: -9.92%
Operating Income
Decreasing
2.62B
QoQ: -5.35% | YoY: -38.44%
Net Income
Decreasing
2.16B
QoQ: 14.63% | YoY: -45.38%
EPS
Decreasing
0.54
QoQ: 14.89% | YoY: -44.33%
Revenue Trend
Margin Analysis
Financial Highlights
1. Revenue: Q4 2024 revenue of $13.6 billion, down 10% YoY; however, it was up 7.4% QoQ. Annual revenue for fiscal 2024 totaled $53.8 billion, down from $57 billion in fiscal 2023.
2. Gross Profit: $8.78 billion for Q4 2024 with a gross profit margin of 67.5%, reflecting strong operational efficiency and product mix improvements.
3. Net Income: $2.16 billion for Q4, a decrease of 45.38% YoY due to challenges including inventory adjustments. EPS was $0.54, down 44.33% YoY.
4. Cash Flow: Operating cash flow amounted to $3.7 billion, reflecting the company’s ability to generate substantial cash despite revenue declines. Free cash flow was reported at $3.53 billion for the quarter.
5. Balance Sheet: Total cash and equivalents totaled $17.9 billion, with total liabilities of $78.96 billion, giving a cash-to-debt ratio of approximately 59%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
13.64B
-10.27%
7.40%
Gross Profit
8.78B
-9.92%
8.49%
Operating Income
2.62B
-38.44%
-5.35%
Net Income
2.16B
-45.38%
14.63%
EPS
0.54
-44.33%
14.89%
Key Financial Ratios
Gross Profit Margin
Excellent
64.40%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
19.20%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
15.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.74%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.76%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.91
Current ratio below safe levels, potential liquidity risk