On this page of StockholderLetter.com we present the latest annual shareholder letter from CISCO SYSTEMS, INC. — ticker symbol CSCO. Reading current and past CSCO letters to shareholders can bring important insights into the investment thesis.

 •  10/18/2024 Letter Continued (Full PDF)
 •  10/17/2023 CSCO Stockholder Letter
 •  More "Manufacturing" Category Stockholder Letters
 •  CSCO Benford's Law Stock Score = 99

CSCO Shareholder/Stockholder Letter Transcript:

Delivering digital
resilience
2024 ANNUAL REPORT

About Cisco
Our Strategy
Our Purpose
To Power an Inclusive
Future for All
We securely connect everything
to make anything possible
We can do good for
the world and do good
for business when we
combine our technology,
our people, and our
broader networks. We
pursue our Purpose by
closing the digital divide,
empowering the future
of work, fighting for
equity and social justice,
and helping to build a
regenerative planet.
Customer
Priorities
Our Differentiation
Innovation
Trust
Global reach
Customer outcomes
at massive scale
Purpose-driven,
trusted brand
Broad customer and
partner reach
y Market-leading secure
networking
y Data protection and
privacy at foundation
y 1M+ customers and
partner ecosystem
y Integrated solutions
across broad portfolio
y Top-rated supply
chain
y 99% of world   s
largest companies
y Unmatched, AI-driven
insights
y Goal to reach net
zero greenhouse gas
emissions across
value chain by 2040
y 82,000+ government
organizations
y 400B security events
observed per day
y 650B observability
metrics tracked per day
Modernize
Infrastructure
Improve
Cybersecurity
Harness the power
of AI and data
These priorities are central
to how we innovate and
develop our technology
Nasdaq: CSCO
Discover more at thenetwork.cisco.com
Follow us on X at @Cisco

Introduction to summary report
This summary provides an overview of Cisco. It does
not contain all the information you should consider.
Please refer to our latest Annual Report on Form 10-K,
our Proxy Statement for our 2024 Annual Meeting of
Stockholders, and our Purpose Report which are all
available on our website at www.cisco.com
Table of Contents
2
Letter to
stockholders
4
Fiscal 2024 highlights
6
Cisco strategy
7
Leadership
8
Corporate
governance
12
Our purpose
Forward-Looking Statements
This Summary Report and our Annual Report on Form 10-K (   Annual Report   ) contain projections and other
forward-looking statements regarding future events or the future financial performance of Cisco, including
future operating results. These projections, goals and statements are only predictions. Actual events or results
may differ materially from those in the projections, goals or other forward-looking statements. See Cisco   s
filing with the Securities and Exchange Commission, including its most recent Annual Report for a discussion of
important risk factors that could cause actual events or results to differ materially from those in the projections,
goals or other forward-looking statements.
Cisco Annual Report 2024
1

Letter to stockholders
To our stockholders,
believe we have an unmatched capability to unlock the full
power of the network and help deliver even greater value
to customers.
Gary Steele, former CEO of Splunk and now the President of
Cisco leading Go-to-Market, is overseeing the integration to
ensure a seamless transition for our teams, our customers,
and our partners. We   ve made significant progress since we
brought the Splunk and Cisco teams together, integrating
powerful new customer solutions and beginning to realize
early synergies. We also signed our first cross-portfolio
agreement that includes Splunk in fiscal 2024, and we
expect this momentum to carry into fiscal 2025 and beyond.
Solving our customers    largest challenges
Fiscal 2024 was a momentous year for Cisco. We delivered
solid results, closed the largest acquisition in our history,
introduced industry-defining innovation, and served our
customers and partners in new and exciting ways. After
a challenging start, we ended the year seeing steady
customer demand and are entering fiscal 2025 with
momentum and optimism.
I am incredibly proud of the Cisco teams for achieving these
results in a dynamic operating environment. While some
headwinds remain, I am extremely confident in our ability to
help our customers drive their most critical outcomes, seize
the massive growth opportunities that exist in the market
    particularly in Artificial Intelligence (AI) and cybersecurity    
and deliver exceptional value for our stockholders.
Solid results
We delivered nearly $54 billion in revenue in fiscal 2024,
the second strongest performance in our history, and 51%
of our total revenues came from subscriptions. These results
are a testament to the work we   ve done to transform our
business mix, create more visibility and predictability in our
model, and provide ongoing value to our customers.
Our focus on operational discipline and execution helped us
deliver strong profitability and return more than $12 billion
    119% of our free cash flow     to our stockholders through
stock repurchases and dividends in fiscal 2024.
Cisco and Splunk: better together
Our acquisition of Splunk     our largest ever     was
completed on March 18, 2024, significantly earlier than
initially anticipated. With Splunk now part of Cisco, we
2
Cisco Annual Report 2024
The world around us is constantly changing, and organizations
are adapting to meet the demands of an increasingly complex
technology landscape. Our customers need to modernize
their infrastructures, improve their cybersecurity postures, and
harness the full power of AI and data, all while building agility
and resiliency across their entire digital footprint.
Our pace of innovation is increasing, and our portfolio has
never been more relevant or more tightly aligned to our
customers key priorities and objectives. Over the past year,
we introduced significant innovation and reinforced our
commitment to offering a more streamlined and cohesive
experience for our customers.
This includes introducing two innovations which we believe
are among the most substantial in our history. The first
is Cisco Hypershield, the first truly distributed, AI-native
cybersecurity solution, built into the fabric of the network. We
believe that Hypershield combines security and networking
in a way only Cisco can, providing better connectivity and
protecting against modern threats at the same time.
The second innovation is Cisco Nexus HyperFabric, a
breakthrough AI cluster solution that combines Cisco AInative networking with NVIDIA accelerated computing and
AI software, and robust VAST data storage. This full-stack,
cloud-managed platform helps our enterprise customers
build infrastructure to run generative AI models and
inference applications.
We believe the true power of Cisco comes from integrating
our portfolio together in unique ways to offer our customers
robust, end-to-end platforms that deliver better outcomes,
simplify the user experience, and maximize business value.

   With Cisco   s leadership and
broad portfolio across Networking,
Security, Collaboration, and
Observability, and now with
the addition of Splunk, we are
in a unique position to help our
customers connect and protect
every aspect of their organizations
in the era of AI.   
We recently announced that we are bringing our
Networking, Security, and Collaboration teams together
as one product organization under a single innovative and
proven leader, Jeetu Patel, our new Chief Product Officer.
The Splunk product portfolio will also be integrated into this
organization in time, so that we can bring the full power of
Cisco to every customer.
Investing to win in AI
While AI offers unlimited potential, it also creates or
exacerbates different challenges. We believe we are
uniquely positioned to help address those challenges and
arm our customers with the infrastructure, security, data,
and observability platforms they need to build, launch,
monitor, and monetize AI applications at scale.
We have crossed $1 billion in AI orders with Webscale
customers to date, and we expect an additional $1 billion of
AI product orders from these customers in fiscal 2025. We
also believe we are well positioned to be the key beneficiary
of AI application proliferation in the Enterprise.
We are pioneering technological solutions through our
ongoing investment in silicon, hardware, and optics. This
includes Cisco Silicon One, our high-performance, lowpower, and scalable networking silicon architecture that
provides the features and efficiency needed to power
AI workloads. We plan to integrate Silicon One into all
of our products and systems over time as part of our
structural advantage.
We are also enhancing our own productivity by using AI in
our Services and Customer Experience organization. We
have a robust AI and Automation framework that touches
at least 50% of our service requests.
In fiscal 2024, we launched a $1 billion global AI investment
fund to bolster the startup ecosystem and expand the
development of secure and reliable AI solutions. Through
this fund, as well as our internal incubation and R&D efforts,
we believe we can help realize the next generation of
technology to meet our customers    future needs.
Living our purpose
Every day, Cisco is focused on driving customer outcomes
as well as working to Power an Inclusive Future for All. For
example, as we work towards our 2040 net zero goal, our
technologies such as Silicon One are helping customers
reduce their own power consumption and greenhouse gas
emissions at the same time.
As we continue to navigate uncertain times, we always look for
areas where we can have a positive impact and drive the most
value. I am very proud that we achieved our goal of positively
impacting one billion people by 2025 ahead of schedule.
I   m also very proud of the work the Cisco Crisis Response
team does in partnership with local communities and
agencies to prepare for, respond to, and sustainably
rebuild from global crises. This team   s ability to provide
connectivity in extremely challenging conditions, restoring
communications when and where they are needed most,
exemplifies the amazing culture we have at Cisco.
In closing, I want to express my gratitude to our stockholders
for your trust in Cisco. While we have faced challenges, we
have also embraced new opportunities, strengthened our
foundation, and positioned the company for continued
growth and success.
As we look to the future, I am confident in our ability to
create even greater value for our stockholders, customers,
partners, and employees. Together, we will continue to
build on our achievements and drive forward with purpose
and determination. Thank you for your support on this
exciting journey.
Chuck Robbins
Chair and Chief Executive Officer
October 18, 2024
Cisco Annual Report 2024
3



 10/18/2024 Letter Continued (Full PDF)