Revenue for Cisco’s largest product category, networking, was down 28% year-over-year. Security, including Splunk, was up 81% and up 6% when Splunk was excluded.
Herren also reported that Splunk bolstered annual reoccurring revenue (ARR), which was $29.6 billion at the end of the quarter, a 22% increase.
Total subscription revenue was $7.7 billion, up 17%, and total software revenue was $5.3 billion, up 15%. Product orders were up 14% year-over-year.
“Excluding Splunk, product orders were up 6% year-over-year,” said Scott, “indicating the period of inventory digestion by our customers is now largely behind us.”
Breaking down product orders geographically, Robbins reported that the Americas was up 15% year-over-year, EMEA was up 12%, and APJC was up 16%. For customer markets, Robbins said that the public sector was up 20% year-over-year, enterprise was up 13%, and service provider and cloud was up 5%.
Cisco ended Q4 with total cash, cash equivalents, and investments of $17.9 billion.
Discussing the full fiscal year, Robbins reported that fiscal 2024 was Cisco’s second strongest year on record, with revenues of $53.8 billion (compared to revenues of $57 billion in fiscal 2023).
“We executed well in Q4 and the fiscal year,” said Robbins. “We exited the year with order levels improving as customers largely completed the implementation of record Cisco product shipments. Further, we are realigning our expenses to better capture the opportunities ahead.”
Despite positive outlooks, Herren reported that Cisco plans for another round of layoffs, its second this year, which will affect approximately 7% of the company’s workforce.
Cisco expects revenue to be in the range of $13.65 billion to $13.85 billion in fiscal Q1 2025 and $55 billion to $56.2 billion in the full fiscal year.
