CSCO Earnings Prediction
The chart below shows how CSCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CSCO sees a -0.53% change in stock price 10 days leading up to the earnings, and a +0.64% change 10 days following the report. On the earnings day itself, the stock moves by -0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
CSCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
13.84B
-5.64%
1.46%
Gross Margin
63.98%
-1.11%
2.53%
Operating Margin
24.05%
-19.81%
19.12%
Net Margin
19.59%
-21.01%
23.60%
EPS
0.68
-23.60%
25.93%
No Data Available
CSCO Earnings Analysis
Cisco Systems Inc Corporation (CSCO.O) Earnings Conference Call
Positive
Strong Demand Growth: Demand growth in the Nexus portfolio saw three out of six products growing over 100% year over year, indicating strong market performance despite geopolitical risks.
AI Orders Surge: Cisco secured $700 million in AI orders this year, with approximately half attributed to silicon and systems, showcasing robust demand in the AI sector.
Enterprise Orders Surge: Enterprise orders increased by over $1 billion in Q2 compared to Q1, reflecting a 29% growth quarter over quarter, demonstrating strong recovery in enterprise demand.
Gross Margin Stability: Cisco's gross margin for the past quarter was reported at 68.7%, with expectations to maintain a range of 67% to 68% for the upcoming quarter, indicating stable profitability.
Security Product Adoption: The company reported significant success in deploying security products, with over 1,000 customers using Cisco Secure Access and XDR, each supporting over 1 million enterprise users, highlighting strong adoption of security solutions.
Negative
Gross Margin Decline Forecast: Gross margin guidance for Q3 is projected to decline to between 67% to 68%, down from 68.7% in the previous quarter, primarily due to the anticipated impact of proposed tariffs.
Customer Demand Hesitance: There is no evidence of customer demand being pulled ahead in response to the tariff environment, indicating potential hesitance in enterprise spending.
Declining Performance Concerns: Splunk's performance was noted to be down 11% year over year, raising concerns about its growth trajectory despite being profitable ahead of expectations.
Tariff Impact on Pricing: The company is facing a fluid tariff environment, with built-in costs from proposed tariffs that could impact future pricing and demand.
Enterprise Order Deceleration: Despite strong order momentum, there are indications that enterprise orders may have decelerated sequentially, suggesting potential weakness in future growth.
CSCO FAQs
How does CSCO typically perform around its earnings report dates?
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CSCO Earning Call Sentiment
Earnings call transcript: Cisco Q1 2025 beats earnings forecast, stock surges
CSCO.O
0.15%Positive
The earnings call presents a mixed picture: while there is strong growth in ARR and AI orders, and a positive outlook for security growth and webscale demand, the decrease in gross margin and lack of a shareholder return plan are concerning. The Q&A reveals uncertainty about AI adoption and tariff impacts, which could affect future performance. The absence of specific shareholder returns and the drop in gross margin suggest a cautious market response, leading to a neutral sentiment.
