Cisco tops Q2 targets with revenue of $12.4 billion
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Cisco delivered in-line second quarter financial results Wednesday after the bell. The tech giant reported a net income of $2.8 billion, or 63 cents per share. Non-GAAP earnings were 73 cents per share on a revenue of $12.4 billion, up 7 percent year over year. A year ago, Cisco earned 63 cents a share on sales of $11.9 billion.
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Wall Street was looking for earnings of 72 cents per share with $12.4 billion in revenue. Cisco's shares were up nearly 4 percent after hours.
For the current quarter, Wall Street is looking for non-GAAP earnings of 76 cents per share with $12.84 billion in revenue. Cisco responded with a revenue outlook that ranges from a 4 percent to 6 percent increase, with EPS between 76 cents a share and 78 cents a share.
Cisco's revenue by segment breaks revenue down in the following categories: infrastructure platforms, applications, security, services and other. Infrastructure platforms revenue was up 6 percent to $7.13 billion; applications revenue was up 24 percent to $1.5 billion; security revenue was up 18 percent to $658 million; and other products revenue was $22 million, down 91 percent.
Cisco's board of directors also approved a $15 billion increase to the authorization of the company's stock repurchase program.
"We are very pleased with our strong performance in the quarter," said Cisco CEO Chuck Robbins, in a statement. "Our teams are executing incredibly well, aggressively transitioning to a software model and accelerating our pace of innovation."