Cisco Systems reported its earnings this quarter today, with revenue meeting its guidance range but notable year-over-year declines.
The company’s revenue was US$13.8 billion (A$21.27 billion) in the first quarter of the U.S. 2025 financial year. This is at the high end of its guidance range, but represents a 6% decrease year-over-year.
"Cisco is off to a strong start to fiscal 2025," said Cisco CEO Chuck Robbins. "Our customers are investing in critical infrastructure to prepare for AI, and with the breadth of our portfolio, we are uniquely positioned to capitalise on this opportunity."
Cisco’s GAAP earnings per share were $0.68, a 24% year-over-year decline.
Its GAAP net income is $2.7 billion. GAAP operating expenses were $6.8 billion, up 28% year-over-year.
The company’s strongest-performing sectors were Security and Observability, with revenue up 100% and 36% respectively. Networking declined by 23% and Collaboration by 3%.
Its Asia-Pacific operations reported revenue growth of 1%, while its Americas and Europe-Middle East-Africa revenue declined by 9% and 2%.
Cisco’s cash flow this quarter was $3.7 billion, compared with $2.4 billion in the same quarter in 2024.
This quarter, Cisco acquired DeepFactor, an application security company, and Robust Intelligence, an AI security solutions firm.
Its guidance for next quarter includes revenue of $13.75 billion to $13.95 billion, and GAAP earnings per share of $0.51 to $0.56.
Cisco’s (NASDAQ: CSCO) share price closed at $59.18, up from the previous day’s $58.71. Its market cap is $235.9 billion.