Executive Summary
Cisco’s QQ4 2024 results showcase a resilient top-line and substantial cash-generation engine within the enterprise networking space. Revenue for the quarter was $13.642 billion, up about 6.65% year over year, with a gross margin of approximately 64.37% and an operating margin near 19.19%. Net income totaled $2.162 billion, translating to eps of $0.54, while EBITDA reached $3.637 billion. The company delivered free cash flow of roughly $3.532 billion, underscoring robust profitability and capital discipline amid a still-throughput IT spend environment.
From a capital allocation perspective, Cisco preserved a strong liquidity position (cash and short-term investments of about $17.85 billion) and returned capital to shareholders through stock repurchases (~$2.242 billion) and dividends (~$1.606 billion) in the quarter, while simultaneously maintaining investment in R&D (~$2.179 billion). Net debt stood at about $23.45 billion with an interest-coverage ratio of ~6.3x, indicating capacity to fund ongoing shareholder returns and strategic initiatives even as leverage remains a meaningful component of the balance sheet.
No explicit full-year 2025 forward guidance was provided in the QQ4 2024 release. The prudent takeaway is for investors to monitor management commentary on software and security revenue mix, progress on cloud-enabled networking solutions, and any cadence or targets related to debt reduction and working capital discipline, as these will shape the company’s ability to sustain margins and cash generation amidst a potentially slower enterprise IT cycle.
Key Performance Indicators
Key Insights
Revenue: $13.642B, YoY +6.65%, QoQ +0.00%
Gross Profit: $8.781B, Gross Margin ~64.37%
Operating Income: $2.618B, Operating Margin ~19.19%
Net Income: $2.162B, Net Margin ~15.85%
EPS: $0.54, YoY -16.92%
EBITDA: $3.637B, EBITDA Margin ~26.66%
Free Cash Flow: $3.532B
Operating Cash Flow: $3.73B
Capital Expenditures: -$198M
Cash and Short-Term Investments: ~$$17.854B
Cash at End of Period: ~$8.848B
Total Assets: ~$124.413B
Total Liabilities: ~$78.956B
Total Debt: ~$30.962B
Net Debt: ~$...
Financial Highlights
Revenue: $13.642B, YoY +6.65%, QoQ +0.00%
Gross Profit: $8.781B, Gross Margin ~64.37%
Operating Income: $2.618B, Operating Margin ~19.19%
Net Income: $2.162B, Net Margin ~15.85%
EPS: $0.54, YoY -16.92%
EBITDA: $3.637B, EBITDA Margin ~26.66%
Free Cash Flow: $3.532B
Operating Cash Flow: $3.73B
Capital Expenditures: -$198M
Cash and Short-Term Investments: ~$$17.854B
Cash at End of Period: ~$8.848B
Total Assets: ~$124.413B
Total Liabilities: ~$78.956B
Total Debt: ~$30.962B
Net Debt: ~$23.454B
Current Ratio: 0.908, Quick Ratio: 0.825, Cash Ratio: 0.185
Dividend Paid: ~$1.606B, Buybacks: ~$2.242B, Financing Outflow: ~$4.507B
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.64B |
6.65% |
0.00% |
| Gross Profit |
8.78B |
6.86% |
0.00% |
| Operating Income |
2.62B |
-15.44% |
0.00% |
| Net Income |
2.16B |
-17.92% |
0.00% |
| EPS |
0.54 |
-16.92% |
0.00% |
Key Financial Ratios
operatingProfitMargin
19.2%
operatingCashFlowPerShare
$0.93
freeCashFlowPerShare
$0.88
dividendPayoutRatio
74.3%
Management Commentary
Transcript data not provided in the dataset. As a result, there are no management quotes or thematic notes to cite for QQ4 2024. If a transcript or excerpt becomes available, I can synthesize themes (strategy, operations, market conditions) and extract quotes.
Not available
— Management
Not available
— Management
Forward Guidance
No explicit numeric guidance was issued for 2025 in the QQ4 2024 release. Given the strong free cash flow and steady margins, multiple scenarios are plausible: (1) modest revenue growth in the mid-single digits with margin stability as software/security mix increases; (2) continued strong cash generation supported by disciplined capital returns; (3) potential pressures if enterprise IT spending slows or if competition intensifies in data-center networking. Key factors to monitor include: software/recurring revenue mix (ARR growth), progress in security offerings, execution of cost controls, debt trajectory, and any new guidance issued in subsequent quarters.