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.