Cisco reports Q1 total adjusted gross margin 69.3%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2024
0mins
Should l Buy CSCO?
Gross Margin Performance: The total gross margin on a non-GAAP basis increased to 69.3%, with product and services gross margins at 68.9% and 70.3%, respectively, compared to lower figures in the first quarter of fiscal 2024.
Geographic Segment Margins: Gross margins varied by region, with the Americas at 69.6%, EMEA at 70.3%, and APJC at 66.4%.
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Analyst Views on CSCO
Wall Street analysts forecast CSCO stock price to rise
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 86.250
Low
76.00
Averages
91.30
High
100.00
Current: 86.250
Low
76.00
Averages
91.30
High
100.00
About CSCO
Cisco Systems, Inc. designs and sells a range of technologies that power the Internet. The Company is integrating its product portfolios across networking, security, collaboration, applications and cloud. The Company's segments include the Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific, Japan, and China (APJC). Its Networking product category represents its core networking technologies of switching, routing, wireless, fifth generation (5G), silicon, optics solutions and compute products. Its Security product category consists of its cloud and application security, industrial security, network security, and user and device security offerings. Its Collaboration product category consists of its meetings, collaboration devices, calling, contact center and platform as a service (CPaaS) offering. Its Observability product category consists of its full stack observability offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Aggregate Holdings Decline: The total CSCO shares held by hedge funds dropped to 44,412,838 from 53,776,806, a decrease of 9,363,968 shares or approximately 17.41%, reflecting a more cautious outlook on Cisco in the market.
- New Positions: Among the latest 13F filers, 3 funds established new positions in Cisco, suggesting potential optimism despite the overall decline in holdings, which could indicate a strategic bet on the company's future performance.
- Market Sentiment Caution: While 13F filings only disclose long positions, the short strategies of hedge funds may remain hidden, necessitating careful analysis to avoid misinterpreting market sentiment.
See More
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- Rising Revenue from High-Performance Computing: The high-performance computing segment accounted for 61% of TSMC's total revenue in Q1, up from 55% in the previous quarter, highlighting the company's strengthened position in the AI market, despite an 11% decline in smartphone revenue.
- ASML Delivery Expectations: ASML anticipates delivering 80 low numerical aperture EUV machines in 2027, a figure that fell short of market expectations for 90 units, leading to a 3% drop in stock price following the earnings report.
- Increased Capital Expenditure Plans: TSMC expects capital expenditures to reach $52-$56 billion in 2026, significantly up from $40.5 billion in 2025, demonstrating the company's commitment to expanding advanced chip manufacturing capacity, although the market remains cautious about achieving its targeted 30% annual growth.
See More
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- Integration Upgrades: By integrating with various security solutions, Endace Probes provide real-time network visibility and forensic evidence, enabling NOC and SOC teams to detect and resolve network threats more efficiently, thereby improving overall response times.
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- Strategic Shift Focus: The company is pivoting towards high-growth areas such as AI networking and cloud services, planning to layer a digital services platform over its fiber network to meet customer demands for rapid data processing, thereby enhancing its market competitiveness.
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