Cisco Systems, Inc. stock research
FY2024 Q2
Cisco Systems (CSCO) Gross Margin — Quarter Ended Jan 27, 2024
For the current quarter, revenue, gross profit, and cost of revenue all decreased compared to the prior quarter, while gross margin declined slightly. Compared to the same quarter last year, revenue and gross profit decreased but cost of revenue decreased more, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Jan 27, 2024 · FY2024 Q2
For the current quarter, revenue, gross profit, and cost of revenue all decreased compared to the prior quarter, while gross margin declined slightly. Compared to the same quarter last year, revenue and gross profit decreased but cost of revenue decreased more, leading to an improved gross margin.
- The strongest observable driver is the change in the proportion of cost of revenue to revenue; this ratio decreased year-over-year but increased sequentially.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.2%
Gross profit
$8.2B
Revenue
$12.8B
Cost of revenue
$4.6B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+2.2 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 |
|---|---|---|---|---|
| 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% |
| Jan 27, 2024 | $12.8B | $8.2B | $4.6B | 64.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 28, 2023
-0.9 pts
Year-over-year change
Jan 28, 2023
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in the proportion of cost of revenue to revenue; this ratio decreased year-over-year but increased sequentially.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin improved.
Monitor inventory levels, which decreased from the prior fiscal year-end, as they may influence future cost of revenue.