Cisco, a leading technology firm, reported a 6% year-on-year decrease in quarterly revenue, falling from $13.592 billion to $12.791 billion. Despite this, the company's gross margin percentage improved from 62.0% to 64.2%, attributed to productivity improvements and a favorable product mix. Operating income as a percentage of revenue remained flat at 24.2%. Net income saw a 5% decline to $2.634 billion, while diluted earnings per share dropped by 3% to $0.65. The company experienced a decrease in product revenue by 9%, although service revenue increased by 4%. Cisco's software revenue remained flat at $4.2 billion, with subscription revenue growing by 5%. The company's geographic segments all reported declines in revenue, with the Americas, EMEA, and APJC segments decreasing by $315 million, $244 million, and $241 million, respectively. Cisco's product categories showed...Show More

Cisco, a leading technology firm, reported a 6% year-on-year decrease in quarterly revenue, falling from $13.592 billion to $12.791 billion. Despite this, the company's gross margin percentage improved from 62.0% to 64.2%, attributed to productivity improvements and a favorable product mix. Operating income as a percentage of revenue remained flat at 24.2%. Net income saw a 5% decline to $2.634 billion, while diluted earnings per share dropped by 3% to $0.65. The company experienced a decrease in product revenue by 9%, although service revenue increased by 4%. Cisco's software revenue remained flat at $4.2 billion, with subscription revenue growing by 5%. The company's geographic segments all reported declines in revenue, with the Americas, EMEA, and APJC segments decreasing by $315 million, $244 million, and $241 million, respectively. Cisco's product categories showed mixed results, with Networking revenue down by 12%, while Security, Collaboration, and Observability categories saw increases of 3%, 3%, and 16%, respectively. Cisco continues to focus on innovation and the transition to a business model with increased software subscription revenue. The company operates in a challenging macroeconomic environment and remains committed to investing in priority areas for long-term profitable growth. Cash and cash equivalents and investments totaled $25.671 billion, a slight decrease from the previous period. Cisco also announced its intent to acquire Splunk for approximately $28 billion, expected to close in late Q1 or early Q2 of calendar year 2024.