Cisco reported fourth quarter financial results Wednesday that come in just ahead of market estimates. The networking giant delivered a net income of $2.2 billion, or 51 cents per share. Non-GAAP earnings were 83 cents per share on revenue of $13.4 billion, up 6% year over year.
Wall Street was looking for earnings of 82 cents per share with $13.38 billion in revenue. Cisco's shares were down around 6% after hours.
Breaking revenue down by segment, Cisco said product revenue was $10.12 billion, up 5%, and service revenue was up 4% to $3.3 billion. Infrastructure Platforms revenue grew by seven percent to bring in $7.8 billion. Applications revenue increased 11 percent to reach $1.48 billion, and Security revenue grew 14% to $714 million. The "other" category fell 81% to $42 million.
Cisco CFO Kelly Kramer said software subscriptions now account for 70% of the company's software revenue.
"Our Q4 results marked a strong end to a great year," said Cisco CEO Chuck Robbins. "We are executing well in a dynamic environment, delivering tremendous innovation across our portfolio and extending our market leadership."
For the current quarter, Wall Street is looking for non-GAAP earnings of 83 cents per share with $13.4 billion in revenue, or growth of 2.5% year over year in revenue. Cisco responded with a revenue outlook that ranges from a zero to 2% increase from the year ago quarter, with EPS between 80 cents a share and 82 cents a share.