Cisco Chairman and CEO Chuck Robbins speaks at a keynote address at the Cisco Live! conference in Las Vegas on June 7, 2023.
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Cisco reported earnings and revenue that topped analysts’ estimates on Wednesday and issued guidance that also exceeded Wall Street’s prediction.
Here’s how the company did in comparison with LSEG consensus:
- Earnings per share:Â 96 cents adjusted vs. 92 cents expected
- Revenue:Â $14.15 billion vs. $14.08 billion expected
Revenue increased 11% during the quarter, which ended on April 26, from $12.7 billion a year earlier, according to a statement. Net income rose to $2.49 billion, or 62 cents per share, from $1.89 billion, or 46 cents per share, a year ago.
The macroeconomic environment is uncertain, CEO Chuck Robbins said on a conference call with analysts.
Robbins said Cisco’s finance chief, Scott Herren, will be leaving after joining in 2020. Mark Patterson, Cisco’s chief strategy officer and a nearly 25-year company veteran, will replace Herren.
Management called for 96 cents to 98 cents in fiscal 2025 earnings per share on $14.5 billion to $14.7 billion in revenue. Analysts surveyed by LSEG had predicted 95 cents in adjusted earnings per share on $14.58 billion in revenue. Cisco said the guidance factors in the expected impact of President Donald Trump’s sweeping tariffs on goods imported into the U.S.
Cisco reported over $600 million in artificial intelligence infrastructure orders from web companies. That brings the total for the fiscal year to over $1.25 billion. Cisco said the sum passed the $1 billion mark a quarter ahead of schedule.
During the quarter, Cisco started selling a Webex AI agent for customer service, and it announced Ethernet switches that contain AMD Pensando data processing units that could help with hardware consolidation.
Networking revenue rose 8% to $7.07 billion, Cisco said. Analysts polled by StreetAccount had expected $6.81 billion.
Revenue from security products jumped 54% to $2.01 billion, below StreetAccount’s $2.17 billion consensus. The unit includes the addition of Splunk, which Cisco bought last year for $27 billion.
As of Wednesday’s close, Cisco shares were up 3.5 for the year%, while the S&P 500 index was about flat.
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