Q1 2025 Cisco Systems Inc Earnings Call Transcript
Key Points
- Cisco Systems Inc (CSCO) delivered $13.8 billion in revenue for Q1, reaching the high end of their guidance range.
- Non-GAAP EPS of $0.91 exceeded expectations, driven by the highest non-GAAP gross margin in over 20 years.
- Product orders grew 20% year-over-year, with strong performance in the Americas and EMEA.
- Security orders more than doubled year-over-year, driven by advanced threat intelligence capabilities from Splunk.
- Cisco Systems Inc (CSCO) returned $3.6 billion to shareholders through share repurchases and cash dividends.
- Total revenue was down 6% year-over-year, primarily due to elevated backlog shipments in the previous year.
- Networking revenue declined by 23%, impacted by the elevated level of shipments from the prior year.
- Public sector orders were up only 2% year-over-year, with US Federal spending lower due to budgetary constraints.
- Collaboration revenue decreased by 3%, driven by declines in on-prem Webex suite and collaboration devices.
- The US Federal market faced delays due to continuing resolutions and fiscal responsibility discussions, impacting order growth.
Welcome to Cisco's first quarter fiscal year 2025 financial results conference call. At the request of Cisco, today's conference is being recorded. If you have any objections, you may disconnect.
Now I would like to introduce Sami Badri, Head of Investor Relations. Sir, you may begin.
Good afternoon, everyone. This is Sami Badri, Cisco's Head of Investor Relations, joined by Chuck Robbins, our Chair and CEO; and Scott Herren, our CFO.
Cisco's earnings press release and supplemental information, including GAAP to non-GAAP reconciliations are available on our Investor Relations website. Following this call, we will also make the recorded webcast and slides available on the website.
Throughout today's call, we'll be referencing both GAAP and non-GAAP financial results. We will discuss product results in terms of revenue and geographic and customer results in terms of product orders unless stated otherwise. All comparisons will be made on a year-over-year basis.
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