Cisco Systems, Inc. stock research
FY2024 Q4
Cisco Systems (CSCO) Gross Margin — Quarter Ended Jul 27, 2024
Revenue and gross profit increased from the previous quarter but decreased from the same quarter last year. Gross margin weakened sequentially but improved year-over-year.
Gross margin takeaway
Quarter ended Jul 27, 2024 · FY2024 Q4
Revenue and gross profit increased from the previous quarter but decreased from the same quarter last year. Gross margin weakened sequentially but improved year-over-year.
- The sequential decline in gross margin, despite higher revenue, is the most notable change. Cost of revenue increased more than revenue, leading to margin compression.
- Compared to the prior quarter, revenue and gross profit grew while gross margin declined. Versus the year-ago quarter, revenue and gross profit were lower but gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.4%
Gross profit
$8.8B
Revenue
$13.6B
Cost of revenue
$4.9B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Jul 27, 2024 | $13.6B | $8.8B | $4.9B | 64.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 27, 2024
-0.8 pts
Year-over-year change
Jul 29, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin, despite higher revenue, is the most notable change. Cost of revenue increased more than revenue, leading to margin compression.
Compared to the prior quarter, revenue and gross profit grew while gross margin declined. Versus the year-ago quarter, revenue and gross profit were lower but gross margin was higher.
Monitor the trend in cost of revenue relative to revenue to assess margin sustainability.