Cisco Systems, Inc. stock research
FY2024 Q3
Cisco Systems (CSCO) Gross Margin — Quarter Ended Apr 27, 2024
Revenue was lower than both the prior quarter and the same quarter a year earlier. Gross profit increased from the prior quarter but decreased from the prior year, while cost of revenue declined in both comparisons, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Apr 27, 2024 · FY2024 Q3
Revenue was lower than both the prior quarter and the same quarter a year earlier. Gross profit increased from the prior quarter but decreased from the prior year, while cost of revenue declined in both comparisons, resulting in an improved gross margin.
- The margin improvement was primarily driven by a larger reduction in cost of revenue relative to the change in revenue, as cost of revenue fell more steeply on a sequential and year-over-year basis.
- Compared to the immediately preceding quarter, revenue was slightly lower, gross profit was slightly higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher due to a proportionally larger decline in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.1%
Gross profit
$8.3B
Revenue
$12.7B
Cost of revenue
$4.4B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| 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% |
| Apr 27, 2024 | $12.7B | $8.3B | $4.4B | 65.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 27, 2024
+0.9 pts
Year-over-year change
Apr 29, 2023
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The margin improvement was primarily driven by a larger reduction in cost of revenue relative to the change in revenue, as cost of revenue fell more steeply on a sequential and year-over-year basis.
Compared to the immediately preceding quarter, revenue was slightly lower, gross profit was slightly higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher due to a proportionally larger decline in cost of revenue.
Monitor inventory levels, which are referenced in the filing context and have declined from the end of the prior fiscal year.