Cisco beats by $0.04, reports revs in-line; guides Q2 EPS above consensus, revs in-line; guides FY25 EPS above consensus, revs in-line; broad-based acceleration in product orders reflecting normalizing demand (59.18 +0.47)
- Reports Q1 (Oct) earnings of $0.91 per share, excluding non-recurring items, $0.04 better than the FactSet Consensus of $0.87; revenues fell 5.6% year/year to $13.84 bln vs the $13.78 bln FactSet Consensus.
- Non-GAAP operating margin was 34.1% vs 31-32% prior guidance.
- Product revenue was down 9% and services revenue up 6%. Excluding Splunk, total revenue was down 14%.
- Revenue by geographic segment was: Americas down 9%, EMEA down 2%, and APJC up 1%.
- Product revenue performance reflected growth in Security up 100% and Observability up 36%. Networking was down 23% and Collaboration was down 3%. Excluding Splunk, Security and Observability grew 2% and 1%, respectively.
- Co issues guidance for Q2 (Jan), sees EPS of $0.89-0.91, excluding non-recurring items, vs. $0.87 FactSet Consensus; sees Q2 revs of $13.75-13.95 bln vs. $13.77 bln FactSet Consensus.
- Co guides to Q2 non-GAAP operating margin of 33.5-34.5%.
- Co issues guidance for FY25, sees EPS of $3.60-3.66, excluding non-recurring items, vs. $3.57 FactSet Consensus; sees FY25 revs of $55.30-56.30 bln vs. $55.83 bln FactSet Consensus.
- "Cisco is off to a strong start to fiscal 2025," said Chuck Robbins, chair and CEO of Cisco. "Our customers are investing in critical infrastructure to prepare for AI, and with the breadth of our portfolio, we are uniquely positioned to capitalize on this opportunity." "Revenue, gross margin and EPS in Q1 were at the high end or above our guidance range, generating strong operating leverage," said Scott Herren, CFO of Cisco. "We are focused on solid execution and operating discipline while making strategic investments to drive innovation and growth."