Tue, May 20, 8:38 PM (23 days ago)
### Cisco Systems, Inc. (CSCO) Q1 2025 Financial Summary **Revenue and Profit Margins:** - **Revenue:** $14.15 billion (up 11% YoY) - Product revenue: $10.37 billion (up 15% YoY) - Services revenue: $3.78 billion (up 3% YoY) - **Gross Margin:** 65.6% (up 0.5% YoY) - **Operating Income:** $3.20 billion (up 46% YoY) - **Net Income:** $2.49 billion (up 32% YoY) - **Earnings per Share (EPS):** $0.62 (up 35% YoY) **Cash Flow:** - **Operating Cash Flow:** $9.96 billion (up 40% YoY) - **Capital Expenditures:** $688 million (up 45% YoY) - **Free Cash Flow:** $9.27 billion (up 38% YoY) **Balance Sheet:** - **Cash and Cash Equivalents:** $8.16 billion (up 9% YoY) - **Total Debt:** $29.28 billion (up 28% YoY) - **Share Repurchases:** $4.74 billion (up 26% YoY) **Segment Performance:** - **Americas:** Revenue up 14% YoY, gross margin 67.7% - **EMEA:** Revenue up 8% YoY, gross margin 71.2% - **APJC:** Revenue up 9% YoY, gross margin 67.2% **Product Categories:** - **Networking:** Revenue up 8% YoY - **Security:** Revenue up 54% YoY - **Collaboration:** Revenue up 4% YoY - **Observability:** Revenue up 24% YoY **Uncertainties and Future Operations:** - **Macroeconomic Environment:** Uncertainty due to tariffs, trade policy, and global economic conditions. - **Supply Chain:** Potential material excess and obsolete inventory charges if product demand decreases. - **Competition:** Highly competitive environment with rapid technological innovation. - **Regulatory Risks:** Compliance with evolving privacy, cybersecurity, and data protection laws. **Strategic Priorities:** - **Innovation:** Focus on AI, cloud, and cybersecurity. - **Customer Transformation:** Assist customers in digital transformation. - **Operational Efficiency:** Drive profitable growth through strategic investments. **Financial Health:** - **Liquidity:** Strong cash position and access to capital markets. - **Debt Management:** Compliance with all debt covenants as of Q1 2025. - **Capital Allocation:** Target to return at least 50% of free cash flow to stockholders annually. **Risks:** - **Economic Downturn:** Potential impact on IT spending and customer demand. - **Supply Chain Disruptions:** Component shortages and manufacturing issues. - **Competitive Pressure:** Increased competition from new and existing players. - **Regulatory Compliance:** Evolving laws and regulations impacting business operations. **Conclusion:** Cisco's Q1 2025 performance shows strong revenue growth and improved profitability, driven by strategic investments and innovation. However, the company faces uncertainties in the macroeconomic environment and supply chain challenges. Cisco remains focused on driving profitable growth and operational efficiency while navigating competitive and regulatory risks.