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Cisco Systems (CSCO) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed Feb 18, 2025
Cisco Systems (CSCO) reported revenue of $14.0B for the second quarter fiscal 2025 (Q2 FY25), +9% from a year earlier and +1% from the quarter before. Operating margin was 22.3%, net earnings $2.4B (17.4% of revenue).
Cisco Systems, Q2 FY25: revenue $14.0B (+9% year over year), operating margin 22.3%, net earnings $2.4B, operating cash flow $2.2B. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $14.0B | +1% | +9% |
| Gross profit | $9.1B | -0.1% | +11% |
| Operating profit | $3.1B | +32% | +0.5% |
| Net earnings | $2.4B | -10% | -8% |
| Operating cash flow | $2.2B | -39% | +177% |
| Free cash flow | $2.0B | -41% | +218% |
What changed
Revenue was $14.0B in Q2 FY25, up 9% year over year and up 1% from the previous quarter. Subscription Revenue, Product was the largest line at 32% of revenue. Subscription Revenue, Product added $1.3B year over year (up 43%), 110% of the total change.
Gross margin was 65.1%, up 0.9 points from a year earlier. Operating profit was $3.1B, a 22.3% margin (down 2.0 points year over year). Of the extra revenue versus a year earlier, 1% reached operating profit, below the 24% margin then. Operating expenses grew 17% against revenue growth of 9%. The fastest-growing cost line was Other operating costs (+253%). Net earnings were $2.4B, down 8% year over year. The effective tax rate was 15.9%.
Operating cash flow was $2.2B (up 177% year over year), 92% of net earnings. Non-cash charges added back $0.92B of share-based compensation. Working capital and other items used $1.1B. Capital expenditures of $0.21B left free cash flow of $2.0B.
Questions
What was Cisco Systems' revenue in the second quarter fiscal 2025?
Cisco Systems (CSCO) reported revenue of $14.0B for the second quarter fiscal 2025 (Q2 FY25), +9% from a year earlier and +1% from the quarter before.
Was Cisco Systems profitable in the second quarter fiscal 2025?
Operating profit was $3.1B (22.3% of revenue) and net earnings $2.4B.
Source: Cisco Systems 10-Q on SEC EDGAR.