Cisco announced its financial results for the fourth quarter and fiscal year 2024, reporting a revenue of $13.6 billion for Q4, slightly above its guidance range. The company’s product order growth saw a 14% year-over-year increase, with a 6% growth excluding Splunk. However, revenue for the quarter decreased by 10% compared to the previous year, reflecting broader market challenges. Cisco’s strong margins continued to impress, with a GAAP gross margin of 64.4% and a non-GAAP gross margin of 67.9% for Q4, the highest in two decades.
For the fiscal year 2024, Cisco reported total revenue of $53.8 billion, a 6% decrease from the previous year. Despite the revenue decline, the company achieved solid growth in software and recurring revenue metrics, bolstered by the integration of Splunk. Total subscription revenue reached $27.4 billion, representing 51% of Cisco’s total revenue. Additionally, the annualized recurring revenue (ARR) hit $29.6 billion, marking a 22% year-over-year increase, with $4.3 billion contributed by Splunk.
Looking ahead, Cisco provided guidance for the first quarter and full fiscal year 2025, projecting revenue between $55.0 billion and $56.2 billion for the year. The company remains focused on driving growth in AI, cloud, and cybersecurity, while maintaining strong capital returns. Cisco also declared a quarterly dividend of $0.40 per share, reflecting its commitment to returning value to shareholders.
Key Highlights:
- Q4 FY 2024 revenue: $13.6 billion, down 10% year-over-year.
- FY 2024 revenue: $53.8 billion, down 6% year-over-year.
- Strong margins: Q4 GAAP gross margin of 64.4%, non-GAAP gross margin of 67.9%.
- Software and subscription growth: $27.4 billion in subscription revenue, 51% of total revenue.
- Annualized Recurring Revenue (ARR): $29.6 billion, up 22% year-over-year.
- Dividend: Quarterly dividend of $0.40 per share.
“We delivered a strong close to fiscal 2024, with steady customer demand and order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI,” said Chuck Robbins, CEO of Cisco.
