Cisco, a leading technology firm, reported a decline in its financial performance for the quarter ended October 26, 2024, compared to the same period in the previous year. The company's revenue fell by 6% to $13.841 billion, while net income dropped by 25% to $2.711 billion. Diluted earnings per share also decreased by 24% to $0.68. Despite a decrease in total revenue, Cisco saw a 0.7 percentage point increase in gross margin to 65.9%. Research and development expenses rose by 19%, and sales and marketing expenses increased by 10%. Operating income as a percentage of revenue saw a significant decline of 12.2 percentage points to 17.0%. The company attributed the revenue decrease to normalization in product demand and highlighted a 24% increase in total software revenue, driven by the contribution of Splunk. Cisco's...Show More

Cisco, a leading technology firm, reported a decline in its financial performance for the quarter ended October 26, 2024, compared to the same period in the previous year. The company's revenue fell by 6% to $13.841 billion, while net income dropped by 25% to $2.711 billion. Diluted earnings per share also decreased by 24% to $0.68. Despite a decrease in total revenue, Cisco saw a 0.7 percentage point increase in gross margin to 65.9%. Research and development expenses rose by 19%, and sales and marketing expenses increased by 10%. Operating income as a percentage of revenue saw a significant decline of 12.2 percentage points to 17.0%. The company attributed the revenue decrease to normalization in product demand and highlighted a 24% increase in total software revenue, driven by the contribution of Splunk. Cisco's product revenue declined by 9%, with notable decreases in Networking and Collaboration, partially offset by significant growth in Security and Observability, again largely due to Splunk's contribution. Looking ahead, Cisco plans to continue investing in key areas to drive profitable growth and assist customers in their digital transformations. The company remains focused on delivering innovation across its technology portfolio.