Cisco Systems, Inc. stock research
FY2024 Q1
Cisco Systems (CSCO) Gross Margin — Quarter Ended Oct 28, 2023
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined relative to both periods, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Oct 28, 2023 · FY2024 Q1
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined relative to both periods, resulting in an improved gross margin.
- The gross margin improvement was driven by a larger relative decline in cost of revenue compared to the change in revenue.
- Compared to the prior quarter, revenue and gross profit were lower, but cost of revenue decreased more, leading to a higher gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.2%
Gross profit
$9.6B
Revenue
$14.7B
Cost of revenue
$5.1B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+3.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 28, 2023 | $13.6B | $8.4B | $5.2B | 62.0% |
| Apr 29, 2023 | $14.6B | $9.2B | $5.3B | 63.4% |
| Jul 29, 2023 | $15.2B | $9.7B | $5.5B | 64.1% |
| Oct 28, 2023 | $14.7B | $9.6B | $5.1B | 65.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 29, 2023
+1.0 pts
Year-over-year change
Oct 29, 2022
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a larger relative decline in cost of revenue compared to the change in revenue.
Compared to the prior quarter, revenue and gross profit were lower, but cost of revenue decreased more, leading to a higher gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower.
Monitor inventory levels, which decreased from the prior quarter as noted in the filing.