Cisco's Fiscal Year 2025 Guidance: A Deep Dive

Overview

On Wednesday, February 8th, 2023, Cisco Systems Inc CSCO announced its financial guidance for the fiscal year 2025. The company issued an update on its FY25 earnings guidance on Wednesday morning.

Income Overview

Cisco provided earnings per share EPS guidance of 352-358 for the period compared to the consensus estimate of 354. This guidance implies a year-over-year growth rate of 4-6%.

Revenue Outlook

Cisco did not provide specific revenue guidance for fiscal 2025. However, the company said that it expects revenue to grow in the mid-single digits. This would be a deceleration from the high-single-digit growth rate that the company has seen in recent quarters.

Key Drivers

Cisco said that the key drivers of its growth in fiscal 2025 will be:

• Continued demand for its networking products
• Growth in its software and services business
• Expansion in emerging markets

Analyst Commentary

Analysts were mixed in their reaction to Cisco's guidance. Some analysts said that the guidance was conservative and that the company could exceed expectations. Others said that the guidance was a sign that the company is facing some challenges in the current economic environment.

Conclusion

Cisco's fiscal year 2025 guidance was a little light compared with our model, but we continue to see a return to growth in fiscal 2025 favorably. We believe that the company's focus on networking, software, and services will help it to continue to grow in the future.

For more information, please read Cisco's press release.