Who Optimizes SG&A Costs Better? Cisco Systems, Inc. or TE Connectivity Ltd.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of technology and connectivity, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Cisco Systems, Inc. and TE Connectivity Ltd. have been at the forefront of this challenge since 2014. Over the past decade, Cisco's SG&A expenses have shown a steady increase, peaking at approximately $13.2 billion in 2024, marking a 15% rise from 2014. In contrast, TE Connectivity has maintained a more stable trajectory, with expenses fluctuating around $1.5 billion to $1.9 billion, reflecting a modest 8% increase over the same period.

Cisco's larger scale and broader market reach contribute to its higher SG&A costs, yet its ability to optimize these expenses remains a critical factor in its financial strategy. Meanwhile, TE Connectivity's consistent expense management highlights its efficiency in maintaining operational costs. As these industry leaders continue to evolve, their SG&A strategies will be pivotal in shaping their competitive edge.