Cisco today reported second quarter results for the period ended January 25, 2025. Cisco reported second quarter revenue of $14.0 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.4 billion or $0.61 per share, and non-GAAP net income of $3.8 billion or $0.94 per share.
"Cisco's strong quarterly results were driven by accelerating customer demand for our technology," said Chuck Robbins, chair and CEO of Cisco. "As AI becomes more pervasive, we are well positioned to help our customers scale their network infrastructure, increase their data capacity requirements, and adopt best-in-class AI security."
"Q2 was another quarter of solid execution which drove revenue and EPS above our guidance ranges. Splunk continues to perform in line with our expectations on the top line, and was accretive to Q2 non-GAAP EPS, earlier than we had planned," said Scott Herren, CFO of Cisco. "Our strong cash flows have led us to increase our annual dividend again this year, as well as our overall share repurchase authorization."
| GAAP Results | ||||||
| | ||||||
| | | Q2 FY 2025 | | Q2 FY 2024 | | Vs. Q2 FY 2024 |
| Revenue | | $ 14.0 billion | | $ 12.8 billion | | 9 % |
| Net Income | | $ 2.4 billion | | $ 2.6 billion | | (8) % |
| Diluted Earnings per Share (EPS) | | $ 0.61 | | $ 0.65 | | (6) % |
| Non-GAAP Results | ||||||
| | ||||||
| | | Q2 FY 2025 | | Q2 FY 2024 | | Vs. Q2 FY 2024 |
| Net Income | | $ 3.8 billion | | $ 3.5 billion | | 6 % |
| EPS | | $ 0.94 | | $ 0.87 | | 8 % |
Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."
Cisco Increases Quarterly Dividend; Stock Repurchase Program Authorization Increased
Cisco has declared a quarterly dividend of $0.41 per common share, a 1-cent increase or up 3% over the previous quarter's dividend, to be paid on April 23, 2025, to all stockholders of record as of the close of business on April 3, 2025. Future dividends will be subject to Board approval.
Cisco's board of directors has also approved a $15 billion increase to the authorization of the stock repurchase program. There is no fixed termination date for the repurchase program. The remaining authorized fixed amount for stock repurchases including the additional authorization is approximately $17 billion.
Financial Summary
All comparative percentages are on a year-over-year basis unless otherwise noted.
Q2 FY 2025 Highlights
Revenue -- Total revenue was $14.0 billion, up 9%, with product revenue up 11% and services revenue up 6%. Excluding the contribution from Splunk, total revenue was down 1%.
Revenue by geographic segment was: Americas up 9%, EMEA up 11%, and APJC up 8%. Product revenue performance reflected growth in Security up 117%, Observability up 47%, and Collaboration up 1%. Networking was down 3%. Excluding Splunk, Security and Observability grew 4% and 3%, respectively, in the second quarter of fiscal 2025.
Gross Margin -- On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.1%, 63.7%, and 68.9%, respectively, as compared with 64.2%, 62.7%, and 68.2%, respectively, in the second quarter of fiscal 2024.
On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 68.7%, 67.7%, and 71.6%, respectively, as compared with 66.7%, 65.2%, and 70.5%, respectively, in the second quarter of fiscal 2024.
Total gross margins by geographic segment were: 67.6% for the Americas, 71.3% for EMEA and 68.3% for APJC.
Operating Expenses -- On a GAAP basis, operating expenses were $6.0 billion, up 17%, and were 42.9% of revenue. Non-GAAP operating expenses were $4.8 billion, up 10%, and were 34.0% of revenue.
Operating Income -- GAAP operating income was $3.1 billion, up 1%, with GAAP operating margin of 22.3%. Non-GAAP operating income was $4.9 billion, up 15%, with non-GAAP operating margin at 34.7%.
Provision for Income Taxes -- The GAAP tax provision rate was 15.9%. The non-GAAP tax provision rate was 19.0%.
Net Income and EPS -- On a GAAP basis, net income was $2.4 billion, a decrease of 8%, and EPS was $0.61, a decrease of 6%. On a non-GAAP basis, net income was $3.8 billion, an increase of 6%, and EPS was $0.94, an increase of 8%.
Cash Flow from Operating Activities -- $2.2 billion for the second quarter of fiscal 2025, an increase of 177%, compared with $0.8 billion for the second quarter of fiscal 2024.
Balance Sheet and Other Financial Highlights
Cash and Cash Equivalents and Investments -- $16.9 billion at the end of the second quarter of fiscal 2025, compared with $17.9 billion at the end of fiscal 2024.
Remaining Performance Obligations (RPO) -- $41.3 billion, up 16% in total, with 51% of this amount to be recognized as revenue over the next 12 months. Product RPO up 25% and services RPO up 8%.
Deferred Revenue -- $27.8 billion, up 8% in total, with deferred product revenue up 12%. Deferred services revenue up 4%.
Capital Allocation -- In the second quarter of fiscal 2025, we returned $2.8 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.40 per common share, or $1.6 billion, and repurchased approximately 21 million shares of common stock under our stock repurchase program at an average price of $58.58 per share for an aggregate purchase price of $1.2 billion.
Acquisitions
In the second quarter of fiscal 2025, we closed the acquisition of Deeper Insights AI Ltd., a privately held AI services company.
Guidance
Cisco estimates the following results for the third quarter of fiscal 2025:
| Q3 FY 2025 | | |
| Revenue | | $13.9 billion - $14.1 billion |
| Non-GAAP gross margin | | 67% – 68% |
| Non-GAAP operating margin | | 33% – 34% |
| Non-GAAP EPS | | $0.90 – $0.92 |
Gross margin guidance includes the estimated impact of proposed tariffs on Mexico, Canada, and China.
Cisco estimates that GAAP EPS will be $0.57 to $0.61 for the third quarter of fiscal 2025.
Cisco estimates the following results for fiscal 2025:
| FY 2025 | | |
| Revenue | | $56.0 billion - $56.5 billion |
| Non-GAAP EPS | | $3.68 – $3.74 |
Gross margin guidance includes the estimated impact of proposed tariffs on Mexico, Canada, and China.
Cisco estimates that GAAP EPS will be $2.40 to $2.52 for fiscal 2025.
Our Q3 FY 2025 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for non-GAAP results. Our FY 2025 guidance assumes an effective tax provision rate of approximately 9% for GAAP and approximately 19% for non-GAAP results.
A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."
Editor's Notes:
| CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per-share amounts) (Unaudited) | |||||||
| | |||||||
| | Three Months Ended | | Six Months Ended | ||||
| | January 25, 2025 | | January 27, 2024 | | January 25, 2025 | | January 27, 2024 |
| REVENUE: | | | | | | | |
| Product | $ 10,234 | | $ 9,232 | | $ 20,348 | | $ 20,371 |
| Services | 3,757 | | 3,559 | | 7,484 | | 7,088 |
| Total revenue | 13,991 | | 12,791 | | 27,832 | | 27,459 |
| COST OF SALES: | | | | | | | |
| Product | 3,713 | | 3,443 | | 7,239 | | 7,400 |
| Services | 1,167 | | 1,131 | | 2,361 | | 2,285 |
| Total cost of sales | 4,880 | | 4,574 | | 9,600 | | 9,685 |
| GROSS MARGIN | 9,111 | | 8,217 | | 18,232 | | 17,774 |
| OPERATING EXPENSES: | | | | | | | |
| Research and development | 2,299 | | 1,943 | | 4,585 | | 3,856 |
| Sales and marketing | 2,672 | | 2,458 | | 5,424 | | 4,964 |
| General and administrative | 752 | | 642 | | 1,547 | | 1,314 |
| Amortization of purchased intangible assets | 265 | | 66 | | 530 | | 133 |
| Restructuring and other charges | 10 | | 12 | | 675 | | 135 |
| Total operating expenses | 5,998 | | 5,121 | | 12,761 | | 10,402 |
| OPERATING INCOME | 3,113 | | 3,096 | | 5,471 | | 7,372 |
| Interest income | 238 | | 324 | | 524 | | 684 |
| Interest expense | (404) | | (120) | | (822) | | (231) |
| Other income (loss), net | (60) | | (139) | | (19) | | (222) |
| Interest and other income (loss), net | (226) | | 65 | | (317) | | 231 |
| INCOME BEFORE PROVISION FOR INCOME TAXES | 2,887 | | 3,161 | | 5,154 | | 7,603 |
| Provision for income taxes | 459 | | 527 | | 15 | | 1,331 |
| NET INCOME | $ 2,428 | | $ 2,634 | | $ 5,139 | | $ 6,272 |
| | | | | | | | |
| Net income per share: | | | | | | | |
| Basic | $ 0.61 | | $ 0.65 | | $ 1.29 | | $ 1.55 |
| Diluted | $ 0.61 | | $ 0.65 | | $ 1.28 | | $ 1.54 |
| Shares used in per-share calculation: | | | | | | | |
| Basic | 3,981 | | 4,055 | | 3,986 | | 4,056 |
| Diluted | 4,005 | | 4,073 | | 4,008 | | 4,079 |
| CISCO SYSTEMS, INC. REVENUE BY SEGMENT (In millions, except percentages) | ||||||||
| | ||||||||
| | | January 25, 2025 | ||||||
| | | Three Months Ended | | Six Months Ended | ||||
| | | Amount | | Y/Y % | | Amount | | Y/Y % |
| Revenue: | | | | | | | | |
| Americas | | $ 8,202 | | 9 % | | $ 16,454 | | — % |
| EMEA | | 3,855 | | 11 % | | 7,444 | | 4 % |
| APJC | | 1,934 | | 8 % | | 3,934 | | 4 % |
| Total | | $ 13,991 | | 9 % | | $ 27,832 | | 1 % |
| |
| Amounts may not sum and percentages may not recalculate due to rounding. |
| CISCO SYSTEMS, INC. GROSS MARGIN PERCENTAGE BY SEGMENT (In percentages) | ||||
| | ||||
| | | January 25, 2025 | ||
| | | Three Months Ended | | Six Months Ended |
| Gross Margin Percentage: | | | | |
| Americas | | 67.6 % | | 68.6 % |
| EMEA | | 71.3 % | | 70.8 % |
| APJC | | 68.3 % | | 67.3 % |
| CISCO SYSTEMS, INC. REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES (In millions, except percentages) | ||||||||
| | ||||||||
| | | January 25, 2025 | ||||||
| | | Three Months Ended | | Six Months Ended | ||||
| | | Amount | | Y/Y % | | Amount | | Y/Y % |
| Revenue: | | | | | | | | |
| Networking | | $ 6,850 | | (3) % | | $ 13,603 | | (14) % |
| Security | | 2,111 | | 117 % | | 4,129 | | 108 % |
| Collaboration | | 996 | | 1 % | | 2,081 | | (1) % |
| Observability | | 277 | | 47 % | | 535 | | 42 % |
| Total Product | | 10,234 | | 11 % | | 20,348 | | — % |
| Services | | 3,757 | | 6 % | | 7,484 | | 6 % |
| Total | | $ 13,991 | | 9 % | | $ 27,832 | | 1 % |
| |
| Excluding Splunk, Security and Observability grew 4% and 3% year over year, respectively, in the second quarter of fiscal 2025. |
| |
| Amounts may not sum and percentages may not recalculate due to rounding. |
| CISCO SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) | |||
| | |||
| | January 25, 2025 | | July 27, 2024 |
| ASSETS | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ 8,556 | | $ 7,508 |
| Investments | 8,297 | | 10,346 |
| Accounts receivable, net of allowance of $80 at January 25, 2025 and $87 at July 27, 2024 | 5,669 | | 6,685 |
| Inventories | 2,927 | | 3,373 |
| Financing receivables, net | 3,074 | | 3,338 |
| Other current assets | 6,158 | | 5,612 |
| Total current assets | 34,681 | | 36,862 |
| Property and equipment, net | 1,992 | | 2,090 |
| Financing receivables, net | 3,240 | | 3,376 |
| Goodwill | 58,719 | | 58,660 |
| Purchased intangible assets, net | 10,139 | | 11,219 |
| Deferred tax assets | 6,591 | | 6,262 |
| Other assets | 6,013 | | 5,944 |
| TOTAL ASSETS | $ 121,375 | | $ 124,413 |
| LIABILITIES AND EQUITY | | | |
| Current liabilities: | | | |
| Short-term debt | $ 11,413 | | $ 11,341 |
| Accounts payable | 1,902 | | 2,304 |
| Income taxes payable | 1,884 | | 1,439 |
| Accrued compensation | 3,299 | | 3,608 |
| Deferred revenue | 15,999 | | 16,249 |
| Other current liabilities | 5,522 | | 5,643 |
| Total current liabilities | 40,019 | | 40,584 |
| Long-term debt | 19,625 | | 19,621 |
| Income taxes payable | 1,756 | | 3,985 |
| Deferred revenue | 11,796 | | 12,226 |
| Other long-term liabilities | 2,649 | | 2,540 |
| Total liabilities | 75,845 | | 78,956 |
| Total equity | 45,530 | | 45,457 |
| TOTAL LIABILITIES AND EQUITY | $ 121,375 | | $ 124,413 |
| CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | |||
| | |||
| | Six Months Ended | ||
| | January 25, | | January 27, |
| Cash flows from operating activities: | | | |
| Net income | $ 5,139 | | $ 6,272 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation, amortization, and other | 1,550 | | 823 |
| Share-based compensation expense | 1,748 | | 1,463 |
| Provision for receivables | 7 | | 12 |
| Deferred income taxes | (382) | | (816) |
| (Gains) losses on divestitures, investments and other, net | (5) | | 205 |
| Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | | | |
| Accounts receivable | 969 | | 941 |
| Inventories | 441 | | 442 |
| Financing receivables | 330 | | (33) |
| Other assets | (427) | | (403) |
| Accounts payable | (359) | | (476) |
| Income taxes, net | (2,285) | | (4,656) |
| Accrued compensation | (293) | | (763) |
| Deferred revenue | (555) | | 293 |
| Other liabilities | 24 | | (125) |
| Net cash provided by operating activities | 5,902 | | 3,179 |
| Cash flows from investing activities: | | | |
| Purchases of investments | (2,261) | | (2,253) |
| Proceeds from sales of investments | 1,791 | | 2,484 |
| Proceeds from maturities of investments | 2,703 | | 4,044 |
| Acquisitions, net of cash and cash equivalents acquired and divestitures | (257) | | (878) |
| Purchases of investments in privately held companies | (137) | | (50) |
| Return of investments in privately held companies | 94 | | 123 |
| Acquisition of property and equipment | (427) | | (304) |
| Other | (5) | | (1) |
| Net cash provided by investing activities | 1,501 | | 3,165 |
| Cash flows from financing activities: | | | |
| Issuances of common stock | 320 | | 349 |
| Repurchases of common stock - repurchase program | (3,243) | | (2,504) |
| Shares repurchased for tax withholdings on vesting of restricted stock units | (655) | | (581) |
| Short-term borrowings, original maturities of 90 days or less, net | 1,012 | | 1,398 |
| Issuances of debt | 10,406 | | 2,537 |
| Repayments of debt | (11,382) | | (750) |
| Dividends paid | (3,185) | | (3,163) |
| Other | (2) | | (7) |
| Net cash used in financing activities | (6,729) | | (2,721) |
| Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (8) | | (32) |
| Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 666 | | 3,591 |
| Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 8,842 | | 11,627 |
| Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $ 9,508 | | $ 15,218 |
| Supplemental cash flow information: | | | |
| Cash paid for interest | $ 769 | | $ 203 |
| Cash paid for income taxes, net | $ 2,682 | | $ 6,804 |
| CISCO SYSTEMS, INC. REMAINING PERFORMANCE OBLIGATIONS (In millions, except percentages) | |||||||||||
| | |||||||||||
| | January 25, 2025 | | October 26, 2024 | | January 27, 2024 | ||||||
| | Amount | | Y/Y% | | Amount | | Y/Y% | | Amount | | Y/Y% |
| Product | $ 20,321 | | 25 % | | $ 19,882 | | 24 % | | $ 16,249 | | 12 % |
| Services | 20,947 | | 8 % | | 20,108 | | 7 % | | 19,407 | | 12 % |
| Total | $ 41,268 | | 16 % | | $ 39,990 | | 15 % | | $ 35,656 | | 12 % |
| |
| We expect 51% of total RPO at January 25, 2025 will be recognized as revenue over the next 12 months. |
| CISCO SYSTEMS, INC. DEFERRED REVENUE (In millions) | |||||
| | |||||
| | January 25, 2025 | | October 26, 2024 | | January 27, 2024 |
| Deferred revenue: | | | | | |
| Product | $ 13,033 | | $ 12,941 | | $ 11,640 |
| Services | 14,762 | | 14,561 | | 14,131 |
| Total | $ 27,795 | | $ 27,502 | | $ 25,771 |
| Reported as: | | | | | |
| Current | $ 15,999 | | $ 15,615 | | $ 14,011 |
| Noncurrent | 11,796 | | 11,887 | | 11,760 |
| Total | $ 27,795 | | $ 27,502 | | $ 25,771 |
| CISCO SYSTEMS, INC. DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK (In millions, except per-share amounts) | ||||||||||||
| | ||||||||||||
| | | DIVIDENDS | | STOCK REPURCHASE PROGRAM | | TOTAL | ||||||
| Quarter Ended | | Per Share | | Amount | | Shares | | Weighted-Average | | Amount | | Amount |
| Fiscal 2025 | | | | | | | | | | | | |
| January 25, 2025 | | $ 0.40 | | $ 1,593 | | 21 | | $ 58.58 | | $ 1,236 | | $ 2,829 |
| October 26, 2024 | | $ 0.40 | | $ 1,592 | | 40 | | $ 49.56 | | $ 2,003 | | $ 3,595 |
| | | | | | | | | | | | | |
| Fiscal 2024 | | | | | | | | | | | | |
| July 27, 2024 | | $ 0.40 | | $ 1,606 | | 43 | | $ 46.80 | | $ 2,002 | | $ 3,608 |
| April 27, 2024 | | $ 0.40 | | $ 1,615 | | 26 | | $ 49.22 | | $ 1,256 | | $ 2,871 |
| January 27, 2024 | | $ 0.39 | | $ 1,583 | | 25 | | $ 49.54 | | $ 1,254 | | $ 2,837 |
| October 28, 2023 | | $ 0.39 | | $ 1,580 | | 23 | | $ 54.53 | | $ 1,252 | | $ 2,832 |
| CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GAAP TO NON-GAAP NET INCOME (In millions) | |||||||
| | |||||||
| | Three Months Ended | | Six Months Ended | ||||
| | January 25, | | January 27, | | January 25, | | January 27, |
| GAAP net income | $ 2,428 | | $ 2,634 | | $ 5,139 | | $ 6,272 |
| Adjustments to cost of sales: | | | | | | | |
| Share-based compensation expense | 151 | | 139 | | 282 | | 242 |
| Amortization of acquisition-related intangible assets | 335 | | 175 | | 654 | | 356 |
| Acquisition/divestiture-related costs | 17 | | 1 | | 36 | | 1 |
| Total adjustments to GAAP cost of sales | 503 | | 315 | | 972 | | 599 |
| Adjustments to operating expenses: | | | | | | | |
| Share-based compensation expense | 765 | | 662 | | 1,444 | | 1,212 |
| Amortization of acquisition-related intangible assets | 265 | | 66 | | 530 | | 133 |
| Acquisition/divestiture-related costs | 205 | | 64 | | 490 | | 139 |
| Russia-Ukraine war costs | — | | — | | — | | (2) |
| Significant asset impairments and restructurings | 10 | | 12 | | 675 | | 135 |
| Total adjustments to GAAP operating expenses | 1,245 | | 804 | | 3,139 | | 1,617 |
| Adjustments to interest and other income (loss), net: | | | | | | | |
| (Gains) and losses on investments | 7 | | 88 | | (91) | | 139 |
| Total adjustments to GAAP interest and other income (loss), net | 7 | | 88 | | (91) | | 139 |
| Total adjustments to GAAP income before provision for income taxes | 1,755 | | 1,207 | | 4,020 | | 2,355 |
| Income tax effect of non-GAAP adjustments | (423) | | (303) | | (899) | | (561) |
| Significant tax matters (1) | — | | — | | (829) | | — |
| Total adjustments to GAAP provision for income taxes | (423) | | (303) | | (1,728) | | (561) |
| Non-GAAP net income | $ 3,760 | | $ 3,538 | | $ 7,431 | | $ 8,066 |
| |
| (1) The six months ended January 25, 2025 include a $720 million benefit due to a recent U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act. |
| CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GAAP TO NON-GAAP EPS | |||||||
| | |||||||
| | Three Months Ended | | Six Months Ended | ||||
| | January 25, | | January 27, | | January 25, | | January 27, |
| GAAP EPS | $ 0.61 | | $ 0.65 | | $ 1.28 | | $ 1.54 |
| Adjustments to GAAP: | | | | | | | |
| Share-based compensation expense | 0.23 | | 0.20 | | 0.43 | | 0.36 |
| Amortization of acquisition-related intangible assets | 0.15 | | 0.06 | | 0.30 | | 0.12 |
| Acquisition/divestiture-related costs | 0.06 | | 0.02 | | 0.13 | | 0.03 |
| Significant asset impairments and restructurings | — | | — | | 0.17 | | 0.03 |
| (Gains) and losses on investments | — | | 0.02 | | (0.02) | | 0.03 |
| Income tax effect of non-GAAP adjustments | (0.11) | | (0.07) | | (0.22) | | (0.14) |
| Significant tax matters | — | | — | | (0.21) | | — |
| Non-GAAP EPS | $ 0.94 | | $ 0.87 | | $ 1.85 | | $ 1.98 |
| |
| Amounts may not sum due to rounding. |
| CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME (In millions, except percentages) | |||||||||||||||||||
| | |||||||||||||||||||
| | Three Months Ended | ||||||||||||||||||
| | January 25, 2025 | ||||||||||||||||||
| | Product Gross | | Services Gross | | Total Gross | | Operating Expenses | | Y/Y | | Operating | | Y/Y | | Interest and other income (loss), net | | Net | | Y/Y |
| GAAP amount | $ 6,521 | | $ 2,590 | | $ 9,111 | | $ 5,998 | | 17 % | | $ 3,113 | | 1 % | | $ (226) | | $ 2,428 | | (8) % |
| % of revenue | 63.7 % | | 68.9 % | | 65.1 % | | 42.9 % | | | | 22.3 % | | | | (1.6) % | | 17.4 % | | |
| Adjustments to GAAP amounts: | | | | | | | | | | | | | | | | | |||
| Share-based compensation expense | 65 | | 86 | | 151 | | 765 | | | | 916 | | | | — | | 916 | | |
| Amortization of acquisition-related intangible assets | 335 | | — | | 335 | | 265 | | | | 600 | | | | — | | 600 | | |
| Acquisition/divestiture-related costs | 3 | | 14 | | 17 | | 205 | | | | 222 | | | | — | | 222 | | |
| Significant asset impairments and restructurings | — | | — | | — | | 10 | | | | 10 | | | | — | | 10 | | |
| (Gains) and losses on investments | — | | — | | — | | — | | | | — | | | | 7 | | 7 | | |
| Income tax effect/significant tax matters | — | | — | | — | | — | | | | — | | | | — | | (423) | | |
| Non-GAAP amount | $ 6,924 | | $ 2,690 | | $ 9,614 | | $ 4,753 | | 10 % | | $ 4,861 | | 15 % | | $ (219) | | $ 3,760 | | 6 % |
| % of revenue | 67.7 % | | 71.6 % | | 68.7 % | | 34.0 % | | | | 34.7 % | | | | (1.6) % | | 26.9 % | | |
| | Three Months Ended | ||||||||||||
| | January 27, 2024 | ||||||||||||
| | Product Gross | | Services Gross Margin | | Total Gross | | Operating Expenses | | Operating Income | | Interest and other income | | Net Income |
| GAAP amount | $ 5,789 | | $ 2,428 | | $ 8,217 | | $ 5,121 | | $ 3,096 | | $ 65 | | $ 2,634 |
| % of revenue | 62.7 % | | 68.2 % | | 64.2 % | | 40.0 % | | 24.2 % | | 0.5 % | | 20.6 % |
| Adjustments to GAAP amounts: | | | | | | | | | | | | | |
| Share-based compensation expense | 58 | | 81 | | 139 | | 662 | | 801 | | — | | 801 |
| Amortization of acquisition-related intangible assets | 175 | | — | | 175 | | 66 | | 241 | | — | | 241 |
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