Cisco Systems, Inc. (CSCO) Bundle
A Brief History of Cisco Systems, Inc.
Cisco Systems, Inc. (CSCO) was founded in 1984 in San Francisco, California, primarily focusing on networking hardware and telecommunications equipment. Over the years, Cisco has evolved through numerous acquisitions and technological advancements, solidifying its position as a leader in the networking and cybersecurity sectors.
Recent Financial Performance
As of July 27, 2024, Cisco reported a total revenue of $53.9 billion for the fiscal year 2024, a decrease from $57.0 billion in fiscal 2023. This decline was attributed to decreased demand in several key market segments.
| Financial Metric | FY 2024 | FY 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $53.9 billion | $57.0 billion | -3.3% |
| Net Income | $10.3 billion | $12.6 billion | -18.3% |
| Operating Income | $12.2 billion | $15.0 billion | -18.9% |
| Earnings Per Share (EPS) | $2.57 | $3.10 | -17.1% |
Major Acquisitions
On March 18, 2024, Cisco completed the acquisition of Splunk, a significant move aimed at enhancing its cybersecurity and observability capabilities. The acquisition was valued at approximately $27 billion.
| Acquisition | Date | Value | Strategic Purpose |
|---|---|---|---|
| Splunk Inc. | March 18, 2024 | $27 billion | Enhance cybersecurity and observability |
Stock Performance
Cisco's stock has experienced fluctuations in the market. As of July 27, 2024, the stock price was $46.80, down from $52.95 a year prior. The decline reflects broader market trends and specific challenges faced by the company.
| Date | Stock Price | Market Capitalization |
|---|---|---|
| July 27, 2024 | $46.80 | $198.5 billion |
| July 29, 2023 | $52.95 | $221.0 billion |
Global Presence and Operations
Cisco operates globally, with major facilities in the United States, Europe, and Asia. The company's headquarters is located in San Jose, California, and it has offices across various countries to support its international client base.
| Region | Headquarters | Significant Locations |
|---|---|---|
| Americas | San Jose, CA, USA | Research Triangle Park, NC; Richardson, TX |
| EMEA | Amsterdam, Netherlands | Major offices in UK, Germany, France |
| APJC | Singapore | Significant presence in India, Australia, China |
Future Outlook
Looking ahead, Cisco aims to leverage its recent acquisitions and innovations in networking and cybersecurity to regain market share and drive growth. The company has committed to investing in key priority areas, including artificial intelligence and cloud solutions, to enhance its competitive edge.
A Who Owns Cisco Systems, Inc. (CSCO)
Major Shareholders
As of 2024, Cisco Systems, Inc. (CSCO) has a diverse ownership structure comprised of institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.65% | 685 million |
| BlackRock, Inc. | 7.15% | 570 million |
| State Street Corporation | 4.54% | 362 million |
| FMR LLC (Fidelity) | 3.95% | 318 million |
| Capital Research Global Investors | 3.67% | 294 million |
| Other Institutional Investors | 68.04% | 5.4 billion |
Institutional Ownership
Institutional investors own approximately 78% of Cisco's total shares, indicating strong confidence from large investment firms in Cisco’s business model and growth potential. The breakdown of institutional ownership as of July 2024 is as follows:
| Institutional Investor | Ownership Percentage |
|---|---|
| Vanguard Total Stock Market Index Fund | 3.92% |
| SPDR S&P 500 ETF Trust | 3.10% |
| iShares Russell 1000 Growth ETF | 2.85% |
| iShares Core S&P 500 ETF | 3.00% |
| Invesco QQQ Trust | 2.62% |
Executive Ownership
Executive officers and board members hold a significant portion of Cisco's shares, reflecting their vested interest in the company’s success. The following table outlines the ownership held by key executives:
| Executive | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Chuck Robbins (CEO) | 0.15% | 12 million |
| Scott Herren (CFO) | 0.05% | 4 million |
| Maria Martinez (Chief Customer Experience Officer) | 0.02% | 1.6 million |
| Other Executives | 0.03% | 2.4 million |
Shareholder Activism
Shareholder activism has played a role in shaping Cisco's strategic direction. In 2024, several activist investors expressed concerns regarding Cisco’s capital allocation strategies, leading to increased scrutiny on share buybacks and dividend policies.
Stock Performance
As of mid-2024, Cisco's stock is trading at approximately $45.00 per share, reflecting a market capitalization of about $183 billion. The stock has seen fluctuations due to market conditions and company performance, including the recent acquisition of Splunk Inc. for $27 billion, which has significantly impacted its financials.
| Metric | Value |
|---|---|
| Current Stock Price | $45.00 |
| Market Capitalization | $183 billion |
| 52-Week Range | $39.00 - $52.00 |
| Dividend Yield | 2.25% |
Cisco Systems, Inc. (CSCO) Mission Statement
Cisco Systems, Inc. is committed to empowering an inclusive future for all by leveraging the power of technology. Our mission is to securely connect everything to make desired outcomes and experiences possible for our customers, enabling businesses and organizations of every size to navigate emerging technological shifts.
Core Values
- Integrity: We uphold the highest standards of integrity in all of our actions.
- Innovation: We are dedicated to continuous innovation to meet customer needs.
- Customer Success: We strive to ensure that our customers achieve their desired outcomes.
- Diversity and Inclusion: We foster a culture of inclusivity and respect.
Financial Overview
As of fiscal year 2024, Cisco's financial performance reflects its commitment to innovation and customer success. The following table summarizes key financial metrics:
| Metric | Fiscal Year 2024 | Fiscal Year 2023 | Fiscal Year 2022 |
|---|---|---|---|
| Total Revenue (in millions) | $53,803 | $56,998 | $51,557 |
| Net Income (in millions) | $10,320 | $12,613 | $11,812 |
| Diluted Earnings per Share | $2.54 | $3.07 | $2.82 |
| Total Cash and Cash Equivalents (in millions) | $17,854 | $26,146 | $24,145 |
| Total Debt (in millions) | $30,962 | $8,391 | $6,500 |
| Dividends Paid (in millions) | $6,384 | $6,302 | $6,056 |
Strategic Priorities
Cisco's strategic priorities for 2024 include:
- Innovation in Security: Focus on enhancing security offerings, with a 32% increase in revenue from security products driven largely by the acquisition of Splunk.
- Networking Solutions: Addressing the decline in networking revenue, which fell by 15%, while continuing to invest in advanced networking technologies.
- Customer Experience: Enhancing customer experience through improved service delivery and support.
- Sustainability: Committing to sustainable business practices that minimize environmental impact.
Market Performance
Cisco's stock performance has been reflective of its financial results:
| Period | Stock Price | Market Capitalization (in billions) |
|---|---|---|
| July 2024 | $46.80 | $189.41 |
| July 2023 | $50.50 | $207.10 |
| July 2022 | $54.20 | $225.70 |
Conclusion
Cisco Systems, Inc. continues to evolve its mission to adapt to changing market conditions while focusing on its core values of integrity, innovation, and customer success. The company's commitment to securely connecting everything positions it well for future growth.
How Cisco Systems, Inc. (CSCO) Works
Business Overview
Cisco Systems, Inc. operates primarily in the technology sector, focusing on networking hardware, software, telecommunications equipment, and high-technology services. As of fiscal 2024, Cisco is structured into three geographic segments: Americas, EMEA (Europe, Middle East, and Africa), and APJC (Asia Pacific, Japan, and China).
Financial Performance
For the fiscal year ending July 27, 2024, Cisco reported total revenue of $53.8 billion, a decrease of 6% compared to the prior year. The breakdown of revenue by geographic segment is as follows:
| Segment | Fiscal 2024 Revenue (in millions) | Fiscal 2023 Revenue (in millions) | Variance (in millions) | Variance (%) |
|---|---|---|---|---|
| Americas | $31,971 | $33,447 | $(1,476) | (4%) |
| EMEA | $14,117 | $15,135 | $(1,018) | (7%) |
| APJC | $7,716 | $8,417 | $(701) | (8%) |
| Total | $53,803 | $56,998 | $(3,195) | (6%) |
Revenue by Product Category
Cisco's revenue is also categorized by product lines. The following table provides a breakdown of revenue by product category for fiscal 2024:
| Product Category | Fiscal 2024 Revenue (in millions) | Fiscal 2023 Revenue (in millions) | Variance (in millions) | Variance (%) |
|---|---|---|---|---|
| Networking | $29,229 | $34,570 | $(5,341) | (15%) |
| Security | $5,075 | $3,859 | $1,216 | 32% |
| Collaboration | $4,113 | $4,052 | $61 | 2% |
| Observability | $837 | $661 | $176 | 27% |
| Total Product Revenue | $39,253 | $43,142 | $(3,889) | (9%) |
Operating Expenses
Operating expenses for Cisco include research and development (R&D), sales and marketing, and general and administrative (G&A) expenses. The details for fiscal 2024 are as follows:
| Expense Category | Fiscal 2024 Expenses (in millions) | Fiscal 2023 Expenses (in millions) | Variance (in millions) | Variance (%) |
|---|---|---|---|---|
| Research and Development | $7,983 | $7,551 | $432 | 6% |
| Sales and Marketing | $10,364 | $9,880 | $484 | 5% |
| General and Administrative | $2,813 | $2,478 | $335 | 14% |
| Total Operating Expenses | $21,160 | $19,909 | $1,251 | 6% |
Net Income and Earnings Per Share
For fiscal 2024, Cisco's net income was $10.32 billion, down 18% from $12.61 billion in fiscal 2023. The diluted earnings per share (EPS) decreased to $2.54 from $3.07.
Cash Flow Overview
In terms of cash flow, Cisco reported cash provided by operating activities of $10.88 billion for fiscal 2024, down from $19.89 billion in fiscal 2023. Cash and cash equivalents at the end of the fiscal year were $8.84 billion.
Debt and Equity Management
Cisco's total debt as of July 27, 2024, was $30.96 billion, significantly up from $8.39 billion in the previous year. The company repurchased $5.76 billion of common stock and paid $6.38 billion in dividends during fiscal 2024.
Strategic Acquisitions
In March 2024, Cisco completed the acquisition of Splunk, contributing approximately $1.4 billion to total revenue for fiscal 2024, enhancing its offerings in the security and observability domains.
Conclusion on Financial Metrics
Overall, Cisco Systems, Inc. has faced challenges in revenue growth across its product categories and geographic segments, but continues to invest in strategic acquisitions and maintain a strong focus on its core competencies in networking and security technologies.
How Cisco Systems, Inc. (CSCO) Makes Money
Revenue Streams
Cisco Systems, Inc. generates revenue primarily through two main streams: product sales and services. For fiscal year 2024, total revenue was reported at $53.8 billion, a decline of 6% from $57.0 billion in fiscal year 2023.
| Revenue Source | Fiscal 2024 ($ millions) | Fiscal 2023 ($ millions) | Change (%) |
|---|---|---|---|
| Total Revenue | 53,803 | 56,998 | -6% |
| Product Revenue | 39,253 | 43,142 | -9% |
| Services Revenue | 14,550 | 13,856 | 5% |
Product Revenue Breakdown
Product revenue consists of various categories, including Networking, Security, Collaboration, and Observability. In fiscal 2024, the product revenue was distributed as follows:
| Product Category | Revenue ($ millions) | Change (%) |
|---|---|---|
| Networking | 29,229 | -15% |
| Security | 5,075 | 32% |
| Collaboration | 4,113 | 2% |
| Observability | 837 | 27% |
Service Revenue Overview
Service revenue represents a growing segment for Cisco, showing an increase of 5% in fiscal 2024. The breakdown of service revenue by geographic segment is as follows:
| Geographic Segment | Service Revenue ($ millions) | Change (%) |
|---|---|---|
| Americas | 8,829 | 5% |
| EMEA | 3,472 | 6% |
| APJC | 2,249 | 4% |
Acquisition Impact
The acquisition of Splunk in March 2024 significantly impacted Cisco's financials, contributing approximately $1.4 billion to total revenue in fiscal 2024, with $1.1 billion from product revenue and $240 million from services revenue.
Geographic Revenue Distribution
Cisco's revenue is geographically segmented into the Americas, EMEA, and APJC. The distribution for fiscal 2024 is as follows:
| Region | Revenue ($ millions) | Change (%) |
|---|---|---|
| Americas | 31,971 | -4% |
| EMEA | 14,117 | -7% |
| APJC | 7,716 | -8% |
Operating Expenses
Operating expenses for fiscal 2024 totaled $22.6 billion, reflecting an increase primarily due to higher expenses related to the acquisition of Splunk and other operational costs:
| Expense Type | Amount ($ millions) | Change (%) |
|---|---|---|
| Research and Development | 7,983 | 6% |
| Sales and Marketing | 10,364 | 5% |
| General and Administrative | 2,813 | 14% |
| Total Operating Expenses | 22,647 | 10% |
Net Income and Earnings Per Share
Net income for fiscal 2024 was reported at $10.3 billion, a decrease of 18% compared to $12.6 billion in fiscal 2023. The diluted earnings per share decreased to $2.54 from $3.07.
| Metric | Fiscal 2024 | Fiscal 2023 | Change (%) |
|---|---|---|---|
| Net Income ($ millions) | 10,320 | 12,613 | -18% |
| Earnings Per Share (Diluted) | 2.54 | 3.07 | -17% |
Cisco Systems, Inc. (CSCO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support