Company Performance - Cisco Systems (CSCO) ended the latest trading session at $57.60, reflecting a +0.12% change from the previous day's close, outperforming the S&P 500's 0.09% loss [1] - Over the past month, Cisco's shares gained 0.05%, underperforming the Computer and Technology sector's 3.04% gain and outperforming the S&P 500's 0.29% loss [2] Earnings Forecast - Cisco is expected to report an EPS of $0.91, indicating a 4.6% growth year-over-year, with revenue projected at $13.86 billion, representing an 8.36% increase compared to the same quarter last year [3] - Full-year estimates predict earnings of $3.64 per share and revenue of $55.93 billion, reflecting year-over-year changes of -2.41% and +3.95%, respectively [4] Analyst Sentiment - Recent shifts in analyst projections for Cisco are crucial, as they often indicate short-term business trends and can influence share price momentum [5] - The Zacks Rank system, which assesses these estimate revisions, currently ranks Cisco at 3 (Hold), with a 0.18% decrease in the consensus EPS estimate over the last 30 days [7] Valuation Metrics - Cisco's Forward P/E ratio stands at 15.79, which is higher than the industry average of 15.13, indicating that Cisco is trading at a premium [8] - The company has a PEG ratio of 3.49, significantly above the Computer-Networking industry's average PEG ratio of 1.35, suggesting a higher expected earnings growth rate relative to its peers [9] Industry Ranking - The Computer-Networking industry, part of the broader Computer and Technology sector, holds a Zacks Industry Rank of 48, placing it in the top 20% of over 250 industries [9][10]

Core Viewpoint - Cisco Systems reported mixed results in its recent earnings report, with earnings exceeding estimates but revenues declining year-over-year, raising questions about future performance and market demand [2][3]. Financial Performance - Cisco's Q1 fiscal 2025 non-GAAP earnings were 91 cents per share, beating estimates by 4.6%, but down 18% year-over-year [2]. - Revenues totaled $13.8 billion, surpassing estimates by 0.57%, yet reflecting a 5.6% decline from the previous year [2]. - Networking revenues fell significantly by 23% year-over-year to $6.75 billion, attributed to weak demand from telecommunications and cable service providers [3]. - Collaboration revenues decreased by 3% year-over-year to $1.09 billion, impacted by declines in on-prem Webex Suite and collaboration devices [5]. - Security revenues doubled year-over-year to $2.02 billion, driven by strong demand for threat intelligence and response solutions [6]. Revenue Breakdown - Total product revenues were $10.11 billion, accounting for 73.1% of total revenues, down 9.2% year-over-year [6]. - Service revenues increased by 5.6% year-over-year to $3.7 billion, making up 26.9% of total revenues [6]. - Annualized Recurring Revenues (ARR) reached $29.9 billion, up 22% year-over-year, with product ARR growth of 42% [7]. Operating Expenses - Non-GAAP gross margin contracted to 69.3%, down 2.6% year-over-year, with product gross margin decreasing by 590 basis points to 50.4% [9]. - Total non-GAAP operating expenses rose by 9% year-over-year to $4.87 billion, representing 35.2% of revenues [9]. - R&D expenses increased by 19.5% year-over-year to $2.29 billion, while sales and marketing expenses rose by 9.8% to $2.75 billion [10]. Balance Sheet and Shareholder Returns - As of October 26, 2024, cash and cash equivalents totaled $18.67 billion, up from $17.85 billion [12]. - Total debt increased to $31.99 billion from $30.96 billion [13]. - Cisco returned $3.6 billion to shareholders through buybacks and dividends, repurchasing approximately 40 million shares for $2 billion [14]. Guidance and Market Outlook - For Q2 fiscal 2025, Cisco expects non-GAAP earnings between 89 cents and 91 cents per share, with revenues projected between $13.75 billion and $13.95 billion [15][16]. - The Zacks Consensus Estimate for Q2 revenues is $13.66 billion, indicating a year-over-year growth of 6.81% [17]. - Estimates for Cisco have trended upward recently, with a Zacks Rank of 3 (Hold), suggesting an in-line return in the coming months [20].

Summary of Cisco Systems, Inc. Conference Call Company Overview - **Company**: Cisco Systems, Inc. (NASDAQ: CSCO) - **Event**: Barclays 22nd Annual Global Technology Conference - **Date**: December 12, 2024 - **Participants**: Chuck Robbins (Chairman and CEO), Tim Long (Barclays Bank), Unidentified Company Representative Key Points Industry Insights - **Macroeconomic Outlook**: The technology industry is navigating a politically charged environment in 2024, with a focus on non-partisan growth policies [9][10] - **Tariffs and Supply Chain**: Companies are adapting to complex supply chains influenced by tax policies, tariffs, and geopolitical risks, with a shift towards resilience in supply chain management [12][13] - **AI Boom**: The rise of AI is driving urgency among customers to modernize and build AI strategies, leading to a solid IT spending environment [15][16] Company Performance - **Current Year Performance**: Cisco is experiencing a strong year with stock trading at a 52-week high and total return to shareholders exceeding 20% [17] - **Growth Drivers**: Key growth areas include AI infrastructure, cybersecurity, and technology refresh driven by a return to office trends [18][19][20] Financial Metrics - **Revenue Composition**: 57% of revenue is from recurring sources, indicating a shift towards software solutions, while 43% remains hardware-based [23] - **Order Growth**: Service provider and cloud orders increased by 22%, driven by AI infrastructure [18] Strategic Initiatives - **AI Integration**: Cisco is focusing on building AI capabilities into its products and solutions, enhancing security and infrastructure for enterprise applications [26][27][28] - **Splunk Acquisition**: The acquisition of Splunk is aimed at enhancing insights into complex technology infrastructures, leveraging AI for better cybersecurity and observability [36][37][43][44] Future Outlook - **2025 Predictions**: Anticipation of significant advancements in AI applications and an escalation in cyber threats [48] - **Enterprise Market Recovery**: Positive signs of recovery in the enterprise market, with a 17% increase in orders excluding Splunk [52] Cultural and Leadership Insights - **Innovation Culture**: Emphasis on fostering a culture of innovation and accountability within Cisco, with a focus on attracting passionate talent [29][30] - **Geopolitical Awareness**: Leaders must be aware of geopolitical and macroeconomic issues that impact technology sales and strategy [54][56] Additional Considerations - **Public-Private Partnerships**: Increased collaboration between public and private sectors on cybersecurity is expected under the new administration [42] - **Emerging Competitors**: New AI cloud specialists present opportunities for Cisco to partner and expand its service offerings [33][34] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Cisco's position in the technology industry and its proactive approach to emerging challenges and opportunities.

Cisco Systems, Inc. (NASDAQ:CSCO) 2024 UBS Global Technology and AI Conference December 3, 2024 12:55 PM ET Company Participants Bill Gartner - SVP and GM of Optical Systems and Optics Group Conference Call Participants David Vogt - UBS David Vogt Good. I guess it's good morning still. I'm David Vogt from the UBS Hardware and Networking team. Thank you again for joining UBS Global Tech Conference, and we're excited to have with us today this morning, Cisco Systems. With us, we have Bill Gartner, SVP and GM ...

Cisco Systems, Inc. (NASDAQ:CSCO) 2024 UBS Global Technology and AI Conference December 3, 2024 12:55 PM ET Company Participants Bill Gartner - SVP and GM of Optical Systems and Optics Group Conference Call Participants David Vogt - UBS David Vogt Good. I guess it's good morning still. I'm David Vogt from the UBS Hardware and Networking team. Thank you again for joining UBS Global Tech Conference, and we're excited to have with us today this morning, Cisco Systems. With us, we have Bill Gartner, SVP and GM ...

Cisco Systems (CSCO) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this seller of routers, switches, software and services have returned +6.7% over the past month versus the Zacks S&P 500 composite's +3.5% change. The Zacks Computer - Networking industry, to which Cisco belongs, has gained 6.4% over this period. Now the key question is: Where could the ...

SAN JOSE, Calif., Nov. 26, 2024 /PRNewswire/ -- Cisco (NASDAQ: CSCO) will host its 2024 Annual Meeting of Stockholders on Monday, December 9, 2024, beginning at 8:00 a.m. PST via audio webcast. Participants will include Cisco Chair and CEO Chuck Robbins.What: 2024 Cisco Virtual Annual Meeting of StockholdersWhen: Monday, December 9, 2024, 8:00 a.m. PSTListen and Watch: A live audio (including closed captioning) webcast of the meeting with synchronized slides will be available online. Cisco stockholders of r ...

Hummingbird Networks Unveils Custom IT Services for Businesses: Buy, Design, Deploy, or Fully Manage Cisco Meraki NetworksNovember 26, 2024 12:47 PM EST | Source: Brand FeaturedSimi Valley, California--(Newsfile Corp. - November 26, 2024) - Hummingbird Networks, a trusted and select certified Cisco Meraki partner, unveils its tailored IT services to help businesses with their technological challenges, enabling them to focus on their growth strategies. To solve tech complexities, the company pr ...

In partnership with Cisco, OneTen offers an inside look at how the employer's skills-first talent management approach promotes measurable business impact, organizational agility, and inclusionNEW YORK, Nov. 25, 2024 /PRNewswire/ -- OneTen, a coalition of leading companies committed to unlocking career opportunities for talent without four-year degrees, today released, "Cisco's Skills-First Success: A Powerful Playbook for the Private Sector" – an in-depth study that examines Cisco's groundbreaking efforts t ...

Cisco Systems, Inc. (NASDAQ:CSCO) RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference November 20, 2024 11:20 AM ET Company Participants Scott Herren - Executive Vice President and Chief Financial Officer Conference Call Participants Matt Hedberg - RBC Matt Hedberg Please, I'll sit over here. All right. I am, oh yes, I was looking forward to this conversation for a lot of reasons. Scott and I go way -- in the way, way back -- and that's what I love about this business as ...