Cisco Systems, Inc.
CSCO
Market Cap$238.53B
Close$
Earnings Call Q1 2025
November 13, 2024 - AI Summary
Strong Financial Performance: Cisco reported Q1 revenue of $13.8 billion, down 6% year-over-year (YOY) but at the high end of guidance. Non-GAAP earnings per share (EPS) came in at $0.91, exceeding expectations, supported by a record non-GAAP gross margin of 69.3%, the highest in over 20 years, driven by favorable product mix and the acquisition of Splunk.
Recurring Revenue Growth: Annualized recurring revenue (ARR) increased by 22% to $29.9 billion, with subscription revenue now comprising 57% of total revenue. Total software revenue was up 24%, indicating a strong demand for subscription-based models and software-driven solutions.
Order Momentum: Product orders grew by 20% YOY in Q1, with notable strength in enterprise orders (up 33%) and service provider/cloud orders (up 28%). The growth was supported by increased demand for AI infrastructure, highlighted by exceeding $300 million in orders from webscale customers, projected to surpass the initial target of $1 billion in AI orders for the fiscal year.
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$63.77
6.5% upside
Current Fair Value
6.5% upsideUndervalued by 6.5% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $238.53 Billion |
|---|---|
| Enterprise Value | $276.30 Billion |
| Dividend Yield | $1.59 (2.65486725663717%) |
| Earnings per Share | $2.55 |
| Beta | 0.82 |
| Outstanding Shares | 3,990,000,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 25.44 |
|---|---|
| PEG | -99.84 |
| Price to Sales | 4.61 |
| Price to Book Ratio | 5.44 |
| Enterprise Value to Revenue | 5.22 |
| Enterprise Value to EBIT | 25.21 |
| Enterprise Value to Net Income | 29 |
| Total Debt to Enterprise | 0.17 |
| Debt to Equity | 1.03 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Cisco Systems, Inc.
CEO: Charles Robbins