Technology
CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 EARNINGS
Published
2 years agoon
By
SAN JOSE, Calif., Aug. 14, 2024 /PRNewswire/ —
News Summary:
Product order growth of 14% year over year; up 6% excluding SplunkRevenue of $13.6 billion in Q4 FY 2024, above the high end of our guidance rangeStrong margins:Q4 FY 2024 GAAP gross margin of 64.4% and Non-GAAP gross margin of 67.9%FY 2024 GAAP gross margin of 64.7% and Non-GAAP gross margin of 67.5%, the highest in 20 yearsSolid growth in software and recurring metrics in FY 2024, enhanced by SplunkTotal subscription revenue of $27.4 billion including Splunk, representing 51% of total revenueTotal annualized recurring revenue (ARR) at $29.6 billion, including $4.3 billion from Splunk, up 22% year over yearTotal software revenue at $18.4 billion, up 9% year over year, with software subscription revenue of $16.4 billion, up 15% year over year, making up 89% of total software revenueQ4 FY 2024 Results:Revenue: $13.6 billionDecrease of 10% year over yearEarnings per Share: GAAP: $0.54; Non-GAAP: $0.87GAAP EPS decreased 44% year over yearNon-GAAP EPS decreased 24% year over yearFY 2024 Results:Revenue: $53.8 billion Decrease of 6% year over yearEarnings per Share: GAAP: $2.54; Non-GAAP: $3.73GAAP EPS decreased 17% year over yearNon-GAAP EPS decreased 4% year over yearQ1 FY 2025 Guidance: Revenue: $13.65 billion to $13.85 billionEarnings per Share: GAAP: $0.35 to $0.42; Non-GAAP: $0.86 to $0.88FY 2025 Guidance: Revenue: $55.0 billion to $56.2 billionEarnings per Share: GAAP: $1.93 to $2.05; Non-GAAP: $3.52 to $3.58
Cisco today reported fourth quarter and fiscal year results for the period ended July 27, 2024. Cisco reported fourth quarter revenue of $13.6 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.54 per share, and non-GAAP net income of $3.5 billion or $0.87 per share.
“We delivered a strong close to fiscal 2024,” said Chuck Robbins, chair and CEO of Cisco. “In our fourth quarter, we saw steady customer demand with order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI.”
“Revenue, gross margin and EPS in Q4 were at the high end or above our guidance range, demonstrating our operating discipline,” said Scott Herren, CFO of Cisco. “As we look to build on our performance, we remain laser focused on growth and consistent execution as we invest to win in AI, cloud and cybersecurity, while maintaining capital returns.”
Q4 GAAP Results
Q4 FY 2024
Q4 FY 2023
Vs. Q4 FY 2023
Revenue
$
13.6 billion
$
15.2 billion
(10) %
Net Income
$
2.2 billion
$
4.0 billion
(45) %
Diluted Earnings per Share (EPS)
$
0.54
$
0.97
(44) %
The acquisition of Splunk, including financing costs, had a negative impact of $0.16 to GAAP EPS, for the fourth quarter of fiscal 2024.
Q4 Non-GAAP Results
Q4 FY 2024
Q4 FY 2023
Vs. Q4 FY 2023
Net Income
$
3.5 billion
$
4.7 billion
(25) %
EPS
$
0.87
$
1.14
(24) %
The acquisition of Splunk, including financing costs, had a negative impact of $0.04 to Non-GAAP EPS, for the fourth quarter of fiscal 2024.
Fiscal Year GAAP Results
FY 2024
FY 2023
Vs. FY 2023
Revenue
$
53.8 billion
$
57.0 billion
(6) %
Net Income
$
10.3 billion
$
12.6 billion
(18) %
EPS
$
2.54
$
3.07
(17) %
The acquisition of Splunk, including financing costs, had a negative impact of $0.25 to GAAP EPS, for fiscal 2024.
Fiscal Year Non-GAAP Results
FY 2024
FY 2023
Vs. FY 2023
Net Income
$
15.2 billion
$
16.0 billion
(5) %
EPS
$
3.73
$
3.89
(4) %
The acquisition of Splunk, including financing costs, had a negative impact of $0.04 to Non-GAAP EPS, for fiscal 2024.
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 Declares Quarterly Dividend
Cisco has declared a quarterly dividend of $0.40 per common share to be paid on October 23, 2024, to all stockholders of record as of the close of business on October 2, 2024. Future dividends will be subject to Board approval.
Financial Summary
All comparative percentages are on a year-over-year basis unless otherwise noted.
Q4 FY 2024 Highlights
Revenue — Total revenue was $13.6 billion, down 10%, with product revenue down 15% and services revenue up 6%. Splunk contributed approximately $960 million of total revenue for the fourth quarter of fiscal 2024.
Revenue by geographic segment was: Americas down 11%, EMEA down 11%, and APJC down 6%. Product revenue performance reflected growth in Security up 81% and Observability up 41%. Networking was down 28%. Product revenue in Collaboration was flat. Security and Observability, excluding Splunk, grew 6% and 12%, respectively, in the fourth quarter of fiscal 2024.
Gross Margin — On a GAAP basis, total gross margin, product gross margin, and services gross margin were 64.4%, 63.0%, and 67.8%, respectively, as compared with 64.1%, 63.6%, and 65.7%, respectively, in the fourth quarter of fiscal 2023.
On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 67.9%, 67.0%, and 70.3%, respectively, as compared with 65.9%, 65.5%, and 67.5%, respectively, in the fourth quarter of fiscal 2023.
Total gross margins by geographic segment were: 67.7% for the Americas, 69.2% for EMEA and 66.4% for APJC.
Operating Expenses — On a GAAP basis, operating expenses were $6.2 billion, up 12%, and were 45.2% of revenue. Non-GAAP operating expenses were $4.8 billion, up 4%, and were 35.4% of revenue.
Operating Income — GAAP operating income was $2.6 billion, down 38%, with GAAP operating margin of 19.2%. Non-GAAP operating income was $4.4 billion, down 17%, with non-GAAP operating margin at 32.5%.
Provision for Income Taxes — The GAAP tax provision rate was 9.8%. The non-GAAP tax provision rate was 16.6%.
Net Income and EPS — On a GAAP basis, net income was $2.2 billion, a decrease of 45%, and EPS was $0.54, a decrease of 44%. On a non-GAAP basis, net income was $3.5 billion, a decrease of 25%, and EPS was $0.87, a decrease of 24%.
Cash Flow from Operating Activities — $3.7 billion for the fourth quarter of fiscal 2024, a decrease of 37% compared with $6.0 billion for the fourth quarter of fiscal 2023.
FY 2024 Highlights
Revenue — Total revenue was $53.8 billion, a decrease of 6%. Splunk contributed approximately $1.4 billion of total revenue for fiscal 2024.
Net Income and EPS — On a GAAP basis, net income was $10.3 billion, a decrease of 18%, and EPS was $2.54, a decrease of 17%. On a non-GAAP basis, net income was $15.2 billion, a decrease of 5% compared to fiscal 2023, and EPS was $3.73, a decrease of 4%.
Cash Flow from Operating Activities — $10.9 billion for fiscal 2024, a decrease of 45% compared with $19.9 billion for fiscal 2023.
Balance Sheet and Other Financial Highlights
Cash and Cash Equivalents and Investments — $17.9 billion at the end of the fourth quarter of fiscal 2024, compared with $18.8 billion at the end of the third quarter of fiscal 2024, and compared with $26.1 billion at the end of fiscal 2023.
Remaining Performance Obligations (RPO) — $41.0 billion, up 18% in total, with 51% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 27% and services RPO were up 10%.
Deferred Revenue — $28.5 billion, up 11% in total, with deferred product revenue up 15%. Deferred service revenue was up 9%.
Capital Allocation — In the fourth quarter of fiscal 2024, we returned $3.6 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 43 million shares of common stock under our stock repurchase program at an average price of $46.80 per share for an aggregate purchase price of $2.0 billion. The remaining authorized amount for stock repurchases under the program is $5.2 billion with no termination date.
Guidance
Cisco estimates the following results for the first quarter of fiscal 2025:
Q1 FY 2025
Revenue
$13.65 billion – $13.85 billion
Non-GAAP gross margin
67% – 68%
Non-GAAP operating margin
32% – 33%
Non-GAAP EPS
$0.86 – $0.88
Cisco estimates that GAAP EPS will be $0.35 to $0.42 for the first quarter of fiscal 2025.
Cisco estimates the following results for fiscal 2025:
FY 2025
Revenue
$55.0 billion – $56.2 billion
Non-GAAP EPS
$3.52 – $3.58
Cisco estimates that GAAP EPS will be $1.93 to $2.05 for fiscal 2025.
Our Q1 FY 2025 and FY 2025 guidance assumes an effective tax provision rate of approximately 17% 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:
Q4 fiscal year 2024 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, August 14, 2024 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).
Conference call replay will be available from 4:00 p.m. Pacific Time, August 14, 2024 to 4:00 p.m. Pacific Time, August 20, 2024 at 1-866-510-4837 (United States) or 1-203-369-1943 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.
Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 14, 2024. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.
CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per-share amounts)
(Unaudited)
Three Months Ended
Fiscal Year Ended
July 27,
2024
July 29,
2023
July 27,
2024
July 29,
2023
REVENUE:
Product
$ 9,858
$ 11,650
$ 39,253
$ 43,142
Services
3,784
3,553
14,550
13,856
Total revenue
13,642
15,203
53,803
56,998
COST OF SALES:
Product
3,644
4,237
14,339
16,590
Services
1,217
1,218
4,636
4,655
Total cost of sales
4,861
5,455
18,975
21,245
GROSS MARGIN
8,781
9,748
34,828
35,753
OPERATING EXPENSES:
Research and development
2,179
1,953
7,983
7,551
Sales and marketing
2,841
2,579
10,364
9,880
General and administrative
763
690
2,813
2,478
Amortization of purchased intangible assets
268
70
698
282
Restructuring and other charges
112
203
789
531
Total operating expenses
6,163
5,495
22,647
20,722
OPERATING INCOME
2,618
4,253
12,181
15,031
Interest income
270
312
1,365
962
Interest expense
(418)
(111)
(1,006)
(427)
Other income (loss), net
(74)
17
(306)
(248)
Interest and other income (loss), net
(222)
218
53
287
INCOME BEFORE PROVISION FOR INCOME TAXES
2,396
4,471
12,234
15,318
Provision for income taxes
234
513
1,914
2,705
NET INCOME
$ 2,162
$ 3,958
$ 10,320
$ 12,613
Net income per share:
Basic
$ 0.54
$ 0.97
$ 2.55
$ 3.08
Diluted
$ 0.54
$ 0.97
$ 2.54
$ 3.07
Shares used in per-share calculation:
Basic
4,018
4,071
4,043
4,093
Diluted
4,035
4,093
4,062
4,105
CISCO SYSTEMS, INC.
REVENUE BY SEGMENT
(In millions, except percentages)
July 27, 2024
Three Months Ended
Fiscal Year Ended
Amount
Y/Y%
Amount
Y/Y%
Revenue:
Americas
$ 8,068
(11) %
$ 31,971
(4) %
EMEA
3,511
(11) %
14,117
(7) %
APJC
2,064
(6) %
7,716
(8) %
Total
$ 13,642
(10) %
$ 53,803
(6) %
Amounts may not sum and percentages may not recalculate due to rounding.
CISCO SYSTEMS, INC.
GROSS MARGIN PERCENTAGE BY SEGMENT
(In percentages)
July 27, 2024
Three Months Ended
Fiscal Year Ended
Gross Margin Percentage:
Americas
67.7 %
66.8 %
EMEA
69.2 %
69.1 %
APJC
66.4 %
67.2 %
CISCO SYSTEMS, INC.
REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES
(In millions, except percentages)
July 27, 2024
Three Months Ended
Fiscal Year Ended
Amount
Y/Y %
Amount
Y/Y %
Revenue:
Networking
$ 6,804
(28) %
$ 29,229
(15) %
Security
1,787
81 %
5,075
32 %
Collaboration
1,019
— %
4,113
2 %
Observability
248
41 %
837
27 %
Total Product
9,858
(15) %
39,253
(9) %
Services
3,784
6 %
14,550
5 %
Total
$ 13,642
(10) %
$ 53,803
(6) %
Security and Observability, excluding Splunk, grew 6% and 12%, respectively, in the fourth quarter of fiscal 2024, and 4% and 15%, respectively, for fiscal 2024.
Amounts may not sum and percentages may not recalculate due to rounding.
CISCO SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
July 27,
2024
July 29,
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 7,508
$ 10,123
Investments
10,346
16,023
Accounts receivable, net of allowance
of $87 at July 27, 2024 and $85 at July 29, 2023
6,685
5,854
Inventories
3,373
3,644
Financing receivables, net
3,338
3,352
Other current assets
5,612
4,352
Total current assets
36,862
43,348
Property and equipment, net
2,090
2,085
Financing receivables, net
3,376
3,483
Goodwill
58,660
38,535
Purchased intangible assets, net
11,219
1,818
Deferred tax assets
6,262
6,576
Other assets
5,944
6,007
TOTAL ASSETS
$ 124,413
$ 101,852
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt
$ 11,341
$ 1,733
Accounts payable
2,304
2,313
Income taxes payable
1,439
4,235
Accrued compensation
3,608
3,984
Deferred revenue
16,249
13,908
Other current liabilities
5,643
5,136
Total current liabilities
40,584
31,309
Long-term debt
19,621
6,658
Income taxes payable
3,985
5,756
Deferred revenue
12,226
11,642
Other long-term liabilities
2,540
2,134
Total liabilities
78,956
57,499
Total equity
45,457
44,353
TOTAL LIABILITIES AND EQUITY
$ 124,413
$ 101,852
CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Fiscal Year Ended
July 27,
2024
July 29,
2023
Cash flows from operating activities:
Net income
$ 10,320
$ 12,613
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and other
2,507
1,726
Share-based compensation expense
3,074
2,353
Provision for receivables
34
31
Deferred income taxes
(972)
(2,085)
(Gains) losses on divestitures, investments and other, net
215
206
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Accounts receivable
(289)
734
Inventories
275
(1,069)
Financing receivables
76
1,102
Other assets
(671)
5
Accounts payable
(90)
27
Income taxes, net
(4,539)
1,218
Accrued compensation
(696)
651
Deferred revenue
1,220
2,326
Other liabilities
416
48
Net cash provided by operating activities
10,880
19,886
Cash flows from investing activities:
Purchases of investments
(4,230)
(10,871)
Proceeds from sales of investments
4,136
1,054
Proceeds from maturities of investments
6,367
5,978
Acquisitions, net of cash and cash equivalents acquired
(25,994)
(301)
Purchases of investments in privately held companies
(284)
(185)
Return of investments in privately held companies
202
90
Acquisition of property and equipment
(670)
(849)
Other
(5)
(23)
Net cash used in investing activities
(20,478)
(5,107)
Cash flows from financing activities:
Issuances of common stock
714
700
Repurchases of common stock – repurchase program
(5,787)
(4,293)
Shares repurchased for tax withholdings on vesting of restricted stock units
(992)
(597)
Short-term borrowings, original maturities of 90 days or less, net
478
(602)
Issuances of debt
31,818
—
Repayments of debt
(9,826)
(500)
Repayments of Splunk convertible debt, net
(3,140)
—
Dividends paid
(6,384)
(6,302)
Other
(37)
(32)
Net cash provided by (used in) financing activities
6,844
(11,626)
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted
cash equivalents
(31)
(105)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents
(2,785)
3,048
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year
11,627
8,579
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year
$ 8,842
$ 11,627
Supplemental cash flow information:
Cash paid for interest
$ 583
$ 376
Cash paid for income taxes, net
$ 7,426
$ 3,571
CISCO SYSTEMS, INC.
REMAINING PERFORMANCE OBLIGATIONS
(In millions, except percentages)
July 27, 2024
April 27, 2024
July 29, 2023
Amount
Y/Y %
Amount
Y/Y %
Amount
Y/Y %
Product
$ 20,055
27 %
$ 18,876
29 %
$ 15,802
12 %
Services
20,993
10 %
19,898
14 %
19,066
9 %
Total
$ 41,048
18 %
$ 38,774
21 %
$ 34,868
11 %
We expect 51% of total RPO at July 27, 2024 will be recognized as revenue over the next 12 months.
CISCO SYSTEMS, INC.
DEFERRED REVENUE
(In millions)
July 27,
2024
April 27,
2024
July 29,
2023
Deferred revenue:
Product
$ 13,219
$ 12,856
$ 11,505
Services
15,256
14,619
14,045
Total
$ 28,475
$ 27,475
$ 25,550
Reported as:
Current
$ 16,249
$ 15,751
$ 13,908
Noncurrent
12,226
11,724
11,642
Total
$ 28,475
$ 27,475
$ 25,550
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 Price
per Share
Amount
Amount
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
Fiscal 2023
July 29, 2023
$ 0.39
$ 1,589
25
$ 50.49
$ 1,254
$ 2,843
April 29, 2023
$ 0.39
$ 1,593
25
$ 49.45
$ 1,259
$ 2,852
January 28, 2023
$ 0.38
$ 1,560
26
$ 47.72
$ 1,256
$ 2,816
October 29, 2022
$ 0.38
$ 1,560
12
$ 43.76
$ 502
$ 2,062
CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GAAP TO NON-GAAP NET INCOME
(In millions)
Three Months Ended
Fiscal Year Ended
July 27,
2024
July 29,
2023
July 27,
2024
July 29,
2023
GAAP net income
$ 2,162
$ 3,958
$ 10,320
$ 12,613
Adjustments to cost of sales:
Share-based compensation expense
133
103
514
396
Amortization of acquisition-related intangible assets
331
168
936
630
Acquisition-related/divestiture costs
21
14
34
18
Supplier component remediation charge (adjustment), net
—
(9)
—
(9)
Total adjustments to GAAP cost of sales
485
276
1,484
1,035
Adjustments to operating expenses:
Share-based compensation expense
660
520
2,537
1,951
Amortization of acquisition-related intangible assets
268
70
698
282
Acquisition-related/divestiture costs
297
63
700
241
Russia-Ukraine war costs
—
(7)
(12)
—
Significant asset impairments and restructurings
112
203
789
531
Total adjustments to GAAP operating expenses
1,337
849
4,712
3,005
Adjustments to interest and other income (loss), net:
Russia-Ukraine war costs
49
—
49
—
(Gains) and losses on investments
(32)
(55)
100
133
Total adjustments to GAAP interest and other income (loss), net
17
(55)
149
133
Total adjustments to GAAP income before provision for income
taxes
1,839
1,070
6,345
4,173
Income tax effect of non-GAAP adjustments
(315)
(215)
(1,360)
(838)
Significant tax matters
(155)
(133)
(155)
31
Total adjustments to GAAP provision for income taxes
(470)
(348)
(1,515)
(807)
Non-GAAP net income
$ 3,531
$ 4,680
$ 15,150
$ 15,979
CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GAAP TO NON-GAAP EPS
Three Months Ended
Fiscal Year Ended
July 27,
2024
July 29,
2023
July 27,
2024
July 29,
2023
GAAP EPS
$ 0.54
$ 0.97
$ 2.54
$ 3.07
Adjustments to GAAP:
Share-based compensation expense
0.20
0.15
0.75
0.57
Amortization of acquisition-related intangible assets
0.15
0.06
0.40
0.22
Acquisition-related/divestiture costs
0.08
0.02
0.18
0.06
Russia-Ukraine war costs
0.01
—
0.01
—
Significant asset impairments and restructurings
0.03
0.05
0.19
0.13
(Gains) and losses on investments
(0.01)
(0.01)
0.02
0.03
Income tax effect of non-GAAP adjustments
(0.08)
(0.05)
(0.33)
(0.20)
Significant tax matters
(0.04)
(0.03)
(0.04)
0.01
Non-GAAP EPS
$ 0.87
$ 1.14
$ 3.73
$ 3.89
Amounts may not sum or recalculate due to rounding.
CISCO SYSTEMS, INC.
GAAP TO NON-GAAP EPS
IMPACT OF SPLUNK ACQUISITION, INCLUDING FINANCING COSTS
July 27, 2024
Three Months Ended
Fiscal Year Ended
GAAP EPS Impact
$ (0.16)
$ (0.25)
Amortization of acquisition-related intangible assets
0.09
0.14
Acquisition-related costs
0.06
0.11
Income tax effect of non-GAAP adjustments
(0.03)
(0.05)
Non-GAAP EPS Impact
$ (0.04)
$ (0.04)
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
July 27, 2024
Product
Gross
Margin
Services
Gross
Margin
Total
Gross
Margin
Operating
Expenses
Y/Y
Operating
Income
Y/Y
Interest
and
other
income
(loss),
net
Net
Income
Y/Y
GAAP amount
$ 6,214
$ 2,567
$ 8,781
$ 6,163
12 %
$ 2,618
(38) %
$ (222)
$ 2,162
(45) %
% of revenue
63.0 %
67.8 %
64.4 %
45.2 %
19.2 %
(1.6) %
15.8 %
Adjustments to GAAP amounts:
Share-based compensation
expense
57
76
133
660
793
—
793
Amortization of acquisition-
related intangible assets
331
—
331
268
599
—
599
Acquisition/divestiture-related
costs
5
16
21
297
318
—
318
Russia-Ukraine war costs
—
—
—
—
—
49
49
Significant asset impairments
and restructurings
—
—
—
112
112
—
112
(Gains) and losses on
investments
—
—
—
—
—
(32)
(32)
Income tax effect/significant tax
matters
—
—
—
—
—
—
(470)
Non-GAAP amount
$ 6,607
$ 2,659
$ 9,266
$ 4,826
4 %
$ 4,440
(17) %
$ (205)
$ 3,531
(25) %
% of revenue
67.0 %
70.3 %
67.9 %
35.4 %
32.5 %
(1.5) %
25.9 %
Three Months Ended
July 29, 2023
Product
Gross
Margin
Services
Gross
Margin
Total
Gross
Margin
Operating
Expenses
Operating
Income
Interest
and
other
income
(loss),
net
Net
Income
GAAP amount
$ 7,413
$ 2,335
$ 9,748
$ 5,495
$ 4,253
$ 218
$ 3,958
% of revenue
63.6 %
65.7 %
64.1 %
36.1 %
28.0 %
1.4 %
26.0 %
Adjustments to GAAP amounts:
Share-based compensation expense
40
63
103
520
623
—
623
Amortization of acquisition-related intangible assets
168
—
168
70
238
—
238
Acquisition/divestiture-related costs
14
—
14
63
77
—
77
Russia-Ukraine war costs
—
—
—
(7)
(7)
—
(7)
Supplier component remediation charge (adjustment), net
(9)
—
(9)
—
(9)
—
(9)
Significant asset impairments and restructurings
—
—
—
203
203
—
203
(Gains) and losses on investments
—
—
—
—
—
(55)
(55)
Income tax effect/significant tax matters
—
—
—
—
—
—
(348)
Non-GAAP amount
$ 7,626
$ 2,398
$ 10,024
$ 4,646
$ 5,378
$ 163
$ 4,680
% of revenue
65.5 %
67.5 %
65.9 %
30.6 %
35.4 %
1.1 %
30.8 %
Amounts may not sum and percentages may not recalculate 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)
Fiscal Year Ended
July 27, 2024
Product
Gross
Margin
Services
Gross
Margin
Total
Gross
Margin
Operating
Expenses
Y/Y
Operating
Income
Y/Y
Interest
and
other
income
(loss),
net
Net
Income
Y/Y
GAAP amount
$ 24,914
$ 9,914
$ 34,828
$ 22,647
9 %
$ 12,181
(19) %
$ 53
$ 10,320
(18) %
% of revenue
63.5 %
68.1 %
64.7 %
42.1 %
22.6 %
0.1 %
19.2 %
Adjustments to GAAP amounts:
Share-based compensation
expense
214
300
514
2,537
3,051
—
3,051
Amortization of acquisition-
related intangible assets
936
—
936
698
1,634
—
1,634
Acquisition/divestiture-related
costs
10
24
34
700
734
—
734
Russia-Ukraine war costs
—
—
—
(12)
(12)
49
37
Significant asset impairments and
restructurings
—
—
—
789
789
—
789
(Gains) and losses on investments
—
—
—
—
—
100
100
Income tax effect/significant tax
matters
—
—
—
—
—
—
(1,515)
Non-GAAP amount
$ 26,074
$ 10,238
$ 36,312
$ 17,935
1 %
$ 18,377
(4) %
$ 202
$ 15,150
(5) %
% of revenue
66.4 %
70.4 %
67.5 %
33.3 %
34.2 %
0.4 %
28.2 %
Fiscal Year Ended
July 29, 2023
Product
Gross
Margin
Services
Gross
Margin
Total
Gross
Margin
Operating
Expenses
Operating
Income
Interest
and
other
income
(loss),
net
Net
Income
GAAP amount
$ 26,552
$ 9,201
$ 35,753
$ 20,722
$ 15,031
$ 287
$ 12,613
% of revenue
61.5 %
66.4 %
62.7 %
36.4 %
26.4 %
0.5 %
22.1 %
Adjustments to GAAP amounts:
Share-based compensation expense
151
245
396
1,951
2,347
—
2,347
Amortization of acquisition-related intangible assets
630
—
630
282
912
—
912
Acquisition/divestiture-related costs
18
—
18
241
259
—
259
Supplier component remediation charge (adjustment),
net
(9)
—
(9)
—
(9)
—
(9)
Significant asset impairments and restructurings
—
—
—
531
531
—
531
(Gains) and losses on investments
—
—
—
—
—
133
133
Income tax effect/significant tax matters
—
—
—
—
—
—
(807)
Non-GAAP amount
$ 27,342
$ 9,446
$ 36,788
$ 17,717
$ 19,071
$ 420
$ 15,979
% of revenue
63.4 %
68.2 %
64.5 %
31.1 %
33.5 %
0.7 %
28.0 %
Amounts may not sum and percentages may not recalculate due to rounding.
CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
EFFECTIVE TAX RATE
(In percentages)
Three Months Ended
Fiscal Year Ended
July 27,
2024
July 29,
2023
July 27,
2024
July 29,
2023
GAAP effective tax rate
9.8 %
11.5 %
15.6 %
17.7 %
Total adjustments to GAAP provision for income taxes
6.8 %
4.0 %
2.9 %
0.3 %
Non-GAAP effective tax rate
16.6 %
15.5 %
18.5 %
18.0 %
GAAP TO NON-GAAP GUIDANCE
Q1 FY 2025
Gross Margin
Operating Margin
Earnings per
Share (2)
GAAP
63.5% – 64.5%
14% – 15%
$0.35 – $0.42
Estimated adjustments for:
Share-based compensation expense
1.0 %
6.0 %
$0.16 – $0.17
Amortization of acquisition-related intangible assets and acquisition/divestiture-related
costs
2.5 %
6.5 %
$0.17 – $0.18
Significant asset impairments and restructurings(1)
—
5.5 %
$0.13 – $0.16
Non-GAAP
67% – 68%
32% – 33%
$0.86 – $0.88
FY 2025
Earnings per
Share (2)
GAAP
$1.93 – $2.05
Estimated adjustments for:
Share-based compensation expense
$0.74 – $0.76
Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs
$0.60 – $0.62
Significant asset impairments and restructurings (1)
$0.19 – $0.21
Non-GAAP
$3.52 – $3.58
(1) On August 14, 2024, Cisco announced a restructuring plan to allow it to invest in key growth opportunities and drive more efficiencies in its business. In connection with this restructuring plan, Cisco currently estimates that it will recognize pre-tax charges of up to $1 billion consisting of severance and other one-time termination benefits, and other costs. Cisco expects to recognize approximately $700 million to $800 million of these charges in the first quarter of fiscal 2025 with the remaining amount expected to be recognized during the rest of the fiscal year.
(2) Estimated adjustments to GAAP earnings per share are shown after income tax effects.
Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia–Ukraine war costs, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.
Forward Looking Statements, Non-GAAP Information and Additional Information
This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as our customers’ reliance on Cisco to connect and protect their organizations in the era of AI and our focus on growth and consistent execution as we invest in AI, cloud and cybersecurity, while maintaining capital returns) and the future financial performance of Cisco (including the guidance for Q1 FY 2025 and full year FY 2025) that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market, cloud, enterprise and other customer markets; the return on our investments in certain priorities, key growth areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and services markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Forms 10-Q and 10-K filed on May 21, 2024 and September 7, 2023, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three months and the year ended July 27, 2024 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.
This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.
Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.
For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia–Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.
Annualized recurring revenue represents the annualized revenue run-rate of active subscriptions, term licenses, operating leases and maintenance contracts at the end of a reporting period, net of rebates to customers and partners as well as certain other revenue adjustments. Includes both revenue recognized ratably as well as upfront on an annualized basis.
About Cisco
Cisco (Nasdaq: CSCO) is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Discover more at newsroom.cisco.com and follow us on X at @Cisco.
Copyright © 2024 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.
RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds
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SOURCE Cisco Systems, Inc.
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Care Career Announces Acquisition of MAS Medical Staffing, Completing Its First Acquisition Phase and Expanding Annual Revenue Beyond $150 Million, with a Path to Exceed a Quarter Billion by the End of 2026 Through Additional Acquisitions and Organic Growth
Published
7 minutes agoon
July 24, 2026By
WOODBRIDGE, N.J., July 24, 2026 /PRNewswire/ — Care Career, a rapidly growing healthcare workforce technology organization, today announced the acquisition of MAS Medical Staffing, one of the Northeast’s leading healthcare workforce organizations. Financial terms of the transaction were not disclosed.
The acquisition represents Care Career’s seventh strategic acquisition in the past 24 months, further strengthening the company’s position as one of the largest healthcare workforce organizations in the United States while accelerating its strategy to redefine the future of healthcare workforce management through artificial intelligence, enterprise technology, and workforce innovation.
MAS Medical Staffing has built an outstanding reputation for delivering high-quality workforce solutions through strong client relationships, exceptional clinician engagement, and deep regional expertise throughout the Northeastern United States. The acquisition significantly expands Care Career’s geographic footprint while broadening its access to healthcare professionals, client relationships, workforce data, and regional market intelligence.
Care Career is building a technology-enabled workforce ecosystem powered by its AI-powered workforce platform, where every acquisition contributes not only additional market presence, but also expanded data, enhanced artificial intelligence capabilities, digital innovation, and operational scale that continuously improve the experience for clients and clinicians alike. As the platform grows, every clinician engagement, client interaction, credential, placement, and workforce trend strengthens the intelligence of Career’s technology, creating a continuously improving ecosystem designed to deliver faster, smarter, and more effective workforce solutions.
The acquisition also brings MAS Medical Staffing’s MAESTRA® engagement technology, along with its client relationships and clinician network, directly onto Career’s AI-powered workforce platform. MAESTRA’s scheduling, credentialing, and communication capabilities will be integrated into Care Career’s existing technology stack, further enhancing clinician engagement across onboarding, scheduling, and career management while providing healthcare organizations with greater workforce visibility and operational efficiency.
“Our vision is to build the AI-powered infrastructure that modernizes healthcare workforce management,” said Siva Konatham, Group President and Chief Executive Officer of Care Career. “Under my leadership, Care Career is focused on transforming a fragmented, labor-intensive industry into a data-driven, technology-enabled ecosystem that improves speed, efficiency, and workforce visibility for healthcare providers. Each acquisition strengthens our platform intelligence, expands our scale, and enhances our margin potential. By integrating advanced analytics, AI automation, and digital engagement tools, we are not just growing revenue—we are building a smarter, more scalable model positioned to lead the next era of healthcare workforce solutions.”
The combined organization will leverage expanded recruiting resources, centralized credentialing, advanced workforce analytics, AI-enabled automation, and digital engagement technologies—all powered by Care Career’s AI-powered workforce platform—to deliver broader recruiting capabilities, faster response times, enhanced workforce insights, and expanded national coverage. Clinicians will benefit from a seamless digital experience that simplifies every stage of their careers—from job discovery and credentialing to onboarding, scheduling, communication, and long-term career development.
With seven strategic acquisitions completed in less than two years, representing the first round of acquisitions now totaling more than $150 million in annual revenue, Care Career has rapidly expanded its national presence while executing a disciplined growth strategy focused on technology integration, operational excellence, and workforce innovation. The company has also signed additional Letters of Intent with other entities with expected close dates in the third quarter of 2026. Upon completion of these transactions, coupled with organic growth, Care Career expects consolidated annual revenue to exceed a quarter of a billion dollars by the end of 2026.
The addition of MAS Medical Staffing further strengthens the organization’s ability to serve healthcare systems, hospitals, long-term care providers, outpatient facilities, and other healthcare organizations across an increasingly diverse geographic footprint.
“The healthcare workforce industry is entering a new era where technology, artificial intelligence, and data-driven decision-making will define the market leaders,” Konatham added. “Every acquisition we complete expands the intelligence of our AI-powered workforce platform, enhances the value we deliver to our clients, and creates more opportunities for clinicians. We believe the combination of exceptional people, innovative technology, and strategic scale positions Care Career to lead the next generation of healthcare workforce solutions.”
About Care Career
Care Career is a technology-enabled healthcare workforce solutions company dedicated to transforming how healthcare organizations recruit, engage, credential, deploy, and retain clinical talent. Powered by its proprietary AI-powered workforce platform and supported by advanced artificial intelligence, enterprise technology, and workforce analytics, Care Career is building an intelligent healthcare workforce ecosystem that connects providers and clinicians more efficiently while improving workforce performance, operational effectiveness, and patient care. Following seven strategic acquisitions over the past 24 months the first round of acquisitions totaling more than $150 million in annual revenue and with additional signed LOIs under contract expected to complete shortly, positioning the company to surpass a quarter of a billion dollars in consolidated annual revenue by the end of 2026, Care Career has become one of the nation’s largest and fastest-growing healthcare workforce organizations, serving healthcare providers and clinicians across the United States.
About MAS Medical Staffing
MAS Medical Staffing is a premier healthcare workforce organization recognized for exceptional service, strong client partnerships, and a commitment to connecting healthcare professionals with rewarding career opportunities. With an established presence throughout the Northeastern United States, MAS Medical Staffing has earned a reputation for quality, responsiveness, and delivering workforce solutions that help healthcare providers meet their evolving workforce needs while supporting clinicians throughout every stage of their careers.
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SOURCE Care Career
Technology
PointsKash Demonstrates How Businesses Can Build on Bitcoin Without Burdening the Blockchain
Published
7 minutes agoon
July 24, 2026By
As industry debate surrounding Bitcoin Improvement Proposal (BIP-110) intensifies, PointsKash unveils an architecture designed to work regardless of the proposal’s outcome.
SCOTTSDALE, Ariz., July 24, 2026 /PRNewswire/ — As the global Bitcoin community debates Bitcoin Improvement Proposal 110 (BIP-110) and the future of data stored on the Bitcoin blockchain, PointsKash, Inc. today announced that its next-generation kiosk infrastructure was intentionally designed to operate efficiently under any outcome of the proposal.
Rather than storing operational data directly on the Bitcoin blockchain, PointsKash utilizes a layered architecture that combines Bitcoin‘s unmatched security with modern decentralized communications technology. Every transaction, machine event, system update, and operational record generated across the PointsKash network is cryptographically verified, securely maintained off-chain, and anchored to the Bitcoin blockchain through a single immutable cryptographic proof.
This approach allows thousands of operational events to be permanently verified while utilizing only a minimal amount of blockchain data.
As discussion surrounding BIP-110 has intensified across the digital asset industry, PointsKash believes the debate does not require choosing between innovation and responsible blockchain stewardship.
“The industry has been debating whether businesses can build meaningful applications on Bitcoin without unnecessarily consuming blockchain space,” said Michael Herron, Chief Executive Officer of PointsKash. “We believe we’ve demonstrated that the answer is yes. Bitcoin provides the world’s most trusted immutable timestamp and security layer, while higher-volume operational data belongs on technologies specifically designed to manage it. By combining both, we’ve built an architecture that is scalable, transparent, and future-ready regardless of how the BIP-110 discussion ultimately evolves.”
The company’s infrastructure assigns every kiosk its own unique cryptographic identity, allowing each machine to securely authenticate every transaction and operational event. Those records are then independently verifiable through cryptographic proofs while remaining resistant to alteration or manipulation—even by PointsKash itself.
According to the company, this architecture delivers several significant advantages:
Mathematically verifiable transaction records for regulators, banking partners, auditors, and enterprise customers.Improved network reliability, allowing kiosks to continue operating during temporary connectivity interruptions without losing transaction history.Enhanced cybersecurity, with every machine maintaining its own authenticated identity and secure communications.A scalable blockchain architecture that minimizes on-chain data while preserving complete auditability.
“Bitcoin was created to provide trust, security, and permanence—not to become a storage system for every piece of application data,” Herron added. “Our philosophy has always been simple: use Bitcoin for what it does better than anyone else—creating immutable proof that records have never been altered—and leverage modern decentralized technologies for everything else. We believe that’s the future of enterprise blockchain infrastructure.”
PointsKash believes this architecture positions the company among a new generation of fintech innovators utilizing Bitcoin as a secure trust layer while developing scalable financial applications for enterprise deployment.
The technology also establishes the foundation for future blockchain-based financial products currently under development, including enhanced digital audit capabilities, verifiable financial records, enterprise licensing opportunities, and next-generation digital asset infrastructure.
As the Bitcoin ecosystem continues to mature, PointsKash believes its technology demonstrates that responsible innovation and blockchain scalability can successfully coexist—providing enterprise organizations with the confidence to build on Bitcoin without contributing unnecessary data to the network.
About PointsKash, Inc.
PointsKash, Inc. is a financial technology company developing an integrated ecosystem of AI-enabled self-service financial centers, digital banking, digital payment solutions, cryptocurrency services, loyalty rewards, enterprise merchant technologies, and mobile financial applications. Through proprietary software, Artificial Intelligence, and strategic partnerships, PointsKash is building innovative financial solutions designed to empower consumers, merchants, and enterprise organizations throughout North America.
For more information, visit www.pointskash.com.
Media Contact
PointsKash, Inc.
Investor Relations
info@pointskash.com
www.pointskash.com
Forward-Looking Statements
This press release contains forward-looking statements regarding anticipated technology integrations, Artificial Intelligence initiatives, product development, future commercialization plans, expected operational efficiencies, business strategy, and future growth. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Factors that could affect actual results include, but are not limited to, technology development timelines, integration efforts, financing, regulatory developments, market conditions, and other risks facing the Company. PointsKash undertakes no obligation to update any forward-looking statements except as required by applicable law.
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SOURCE PointsKash Inc.
Technology
As ADA Anniversary Approaches, University of Phoenix Survey Highlights AI’s Potential to Advance Accessibility in Work and Learning
Published
1 hour agoon
July 24, 2026By
Survey conducted by The Harris Poll on behalf of University of Phoenix finds among those already using AI in the workplace, 60% say AI has improved their knowledge of and ability to use accessibility standards and guidelines.
PHOENIX, July 24, 2026 /PRNewswire/ — As artificial intelligence becomes part of how people work, learn and solve problems, a new University of Phoenix survey conducted by The Harris Poll finds that recent working learners see meaningful opportunities for AI to support accessibility. The survey was designed to understand the impact of AI in the workplace and learning environments on accessibility, defined as ensuring digital content, tools and resources, including AI tools and output, are usable by people with different abilities through inclusive design, use of assistive technology or conformance with accessibility standards, such as the Web Content Accessibility Guidelines (WCAG). The findings are being released ahead of the 36th anniversary of the Americans with Disabilities Act (ADA) on July 26.
The survey, conducted among 1,019 U.S. employed adults who completed a professionally presented training or school course in the past 12 months (“recent working learners”), found that, among workers already using AI in the workplace, 3 in 5 (60%) say AI has improved their knowledge of and ability to use accessibility standards and guidelines, including nearly 1 in 5 (19%) who report significant improvement.
While the findings point to optimism about AI’s accessibility potential, they also reveal an opportunity for clearer organizational guidance: 45% of respondents say accessibility is absent from, unclear in, or they are uncertain whether it is covered by their workplace AI policies.
“The reality is that accessibility benefits everyone,” shares Kelly Hermann, Vice President of Accessibility and Student Affairs at University of Phoenix. “If accessibility is built in from the beginning, organizations are more likely to create AI-enabled environments that are universally usable. Clearer content, better summaries, accurate captions, and multiple formats can help workers and learners with disabilities, but they also help busy adults, multilingual learners, mobile users, and anyone trying to absorb information quickly.”
Key findings from the survey include:
Workers see AI’s accessibility potential: 89% of recent working learners identify workflows that could benefit from AI and accessibility tools, especially creating accessible documents, presentations, websites or learning materials (38%), presenting information in different formats such as plain language, audio, summaries or translations (33%), and training employees or learners on accessibility practices (30%).AI may help build accessibility awareness: Among those already using AI in the workplace, 60% say AI has improved their knowledge of and ability to use accessibility standards and guidelines.Accessibility is not always clear in workplace AI policies: 45% of recent working learners say accessibility is absent from, unclear in, or they are uncertain whether it is covered by their workplace AI policies.AI tools may not yet fully support different access needs: Among those who use workplace AI tools, only about a quarter of survey respondents (27%) say AI tools available through their workplace or professional learning environment support people with disabilities very well.Human oversight remains important: 36% of recent working learners say human review for important decisions or high-impact work should be part of responsible AI use at work or school.Workers also recognize how AI and accessibility can have an impact on their own career journey: 90% of recent working learners identify AI and accessibility skills that would be valuable in their current or desired career field, including 45% who see value in understanding when AI-generated content needs human review.
Why accessibility is essential to responsible AI adoption
As AI tools are used to draft documents, summarize information, generate captions and transcripts, create image descriptions, support learning and assist with workplace tasks, accessibility becomes central to responsible use. Poorly implemented AI can also create or amplify barriers, including inaccessible content, inaccurate summaries, biased outputs and tools that do not work effectively with assistive technologies.
“Responsible AI is not only about productivity,” Hermann said. “It is about whether the technology works for the people who need to use it. AI can help create more accessible materials and more flexible ways to engage with information, but it still requires clear policies, practical training and human judgment to make sure the outputs are accurate, applicable and usable.”
What the findings mean for employers and educators
The survey suggests that organizations have an opportunity to align AI adoption with supportive design, accessibility practices and workforce training. Employers and educators can take immediate steps by:
Naming accessibility directly in AI policies and guidance.Choosing AI tools with accessibility and assistive technology compatibility in mind.Training workers and learners to create, check and improve accessible AI-generated content.Making support pathways clear for people who experience barriers using AI tools.Keeping human review in place for important decisions, high-impact work and accessibility-sensitive outputs.
The survey also found workers want practical AI training. The most helpful resources identified by recent working learners include real-world examples from their field or industry (36%), hands-on practice using realistic workplace scenarios (34%) and step-by-step demonstrations of common tasks (33%).
Accessibility insights from University of Phoenix
Hermann shared the survey findings ahead of the ADA anniversary in recent media interviews. Hermann oversees the University’s accessibility initiative, including evaluation and remediation of curricular resources, the Center for Access, Resources, Engagement and Support Services (CARES), and the Office of Collaborative Learning and Educational Engagement. Her work focuses on fostering accessible and welcoming educational environments for students, faculty and staff.
Hermann’s office at University of Phoenix also convenes accessibility conversations through initiatives such as Access Amplified™, a free, annual virtual event focused on advancing digital accessibility in web development. The event brings together engineers, developers, designers, content authors and digital strategists for practical strategies and human-centered conversations that address the gap between coding practices and how users with assistive technology experience the web.
About the survey
The survey was conducted online within the United States by The Harris Poll on behalf of University of Phoenix from June 22–29, 2026, among 1,019 employed adults ages 18 and older who have taken a professionally presented training or a school course in the past 12 months, referred to as “recent working learners.” Data were weighted where necessary by age, gender, race/ethnicity, region, education, employment, marital status, household size, household income and smoking status to bring them in line with their actual proportions in the population.
Respondents for this survey were selected from among those who have agreed to participate in surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 3.8 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest.
Review the complete survey at phoenix.edu/aiaccessibility.
About University of Phoenix
University of Phoenix is Built for Real Life. 50 Years Strong. The University innovates to help working adults enhance their careers and develop skills in a rapidly changing world through flexible online learning, relevant courses, academic AI pillars, and skills-mapped curriculum for associate, bachelor’s and master’s degree programs. Active students and alumni have access to Career Services for Life® resources including career guidance and tools. For more information, visit phoenix.edu.
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SOURCE University of Phoenix
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