Summary by Futu AI
Cisco reported first quarter fiscal 2025 revenue of $13.8 billion, down 6% year-over-year, with product revenue declining 9% to $10.1 billion and services revenue growing 6% to $3.7 billion. Excluding Splunk, total revenue decreased 14%. The company's net income fell 25% to $2.7 billion, while diluted earnings per share decreased 24% to $0.68.Gross margin improved by 0.7 percentage points to 65.9%, driven by benefits from Splunk, favorable product mix and productivity improvements, partially offset by pricing erosion. Operating income declined 45% to $2.4 billion, impacted by incremental expenses from Splunk, higher restructuring charges of $665 million, and increased amortization of purchased intangible assets.By segment, Americas revenue decreased by $770 million, EMEA declined by $76 million while APJC grew by $19 million. The company announced a restructuring plan affecting approximately 7% of its global workforce with estimated pre-tax charges of up to $1 billion. Cisco maintained its commitment to return a minimum of 50% of free cash flow to shareholders through dividends and share repurchases.