Who Optimizes SG&A Costs Better? Cisco Systems, Inc. or Electronic Arts Inc.

Optimizing SG&A: A Tale of Two Giants

In the competitive landscape of technology and entertainment, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Cisco Systems, Inc. and Electronic Arts Inc. (EA) have been navigating this financial terrain since 2014. Cisco, a leader in networking technology, has consistently maintained SG&A expenses around 11% of its revenue, showcasing a disciplined approach to cost management. In contrast, EA, a titan in the gaming industry, has seen its SG&A expenses rise from 1.1% to 1.7% of revenue over the years, reflecting its investment in marketing and development.

A Decade of Financial Strategy

From 2014 to 2024, Cisco's SG&A expenses have shown a steady trend, peaking in 2024. Meanwhile, EA's expenses have gradually increased, indicating a strategic shift towards aggressive market expansion. This comparison highlights the distinct financial strategies of these industry leaders, offering insights into their operational priorities.