Cisco Systems, Inc. stock research
FY2025 Q2
Cisco Systems (CSCO) Gross Margin — Quarter Ended Jan 25, 2025
The current quarter's gross profit and cost of revenue together determine gross margin. Revenue increased compared to both the prior quarter and the same quarter a year earlier, while gross profit was level with the prior quarter but higher than a year ago, resulting in a gross margin that weakened from the prior quarter but improved from a year ago.
Gross margin takeaway
Quarter ended Jan 25, 2025 · FY2025 Q2
The current quarter's gross profit and cost of revenue together determine gross margin. Revenue increased compared to both the prior quarter and the same quarter a year earlier, while gross profit was level with the prior quarter but higher than a year ago, resulting in a gross margin that weakened from the prior quarter but improved from a year ago.
- The most significant relationship is that the gross margin decline from the prior quarter coincides with an increase in cost of revenue combined with unchanged gross profit.
- Relative to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue grew modestly and gross profit stayed flat. Compared to the same quarter one year earlier, gross margin improved as revenue and gross profit both increased at a faster rate than 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
$9.1B
Revenue
$14.0B
Cost of revenue
$4.9B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+0.9 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 |
|---|---|---|---|---|
| Apr 27, 2024 | $12.7B | $8.3B | $4.4B | 65.1% |
| Jul 27, 2024 | $13.6B | $8.8B | $4.9B | 64.4% |
| Oct 26, 2024 | $13.8B | $9.1B | $4.7B | 65.9% |
| Jan 25, 2025 | $14.0B | $9.1B | $4.9B | 65.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 26, 2024
-0.8 pts
Year-over-year change
Jan 27, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant relationship is that the gross margin decline from the prior quarter coincides with an increase in cost of revenue combined with unchanged gross profit.
Relative to the immediately preceding quarter, gross margin weakened as cost of revenue rose while revenue grew modestly and gross profit stayed flat. Compared to the same quarter one year earlier, gross margin improved as revenue and gross profit both increased at a faster rate than cost of revenue.
Monitor inventory levels, as reported in the filing's key financial measures, for their potential impact on future cost of revenue.