Cisco tops Q4 earnings targets
Cisco reported fourth quarter financial results Wednesday, coming in just ahead of market estimates. The networking giant delivered a net income of $3.8 billion, or 81 cents per share. Non-GAAP earnings were 70 cents per share on revenue of $12.8 billion, up six percent year over year.
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Wall Street was looking for earnings of 69 cents per share with $12.7 billion in revenue. Cisco's shares were up around three percent after hours.
Breaking revenue down by segment, Cisco said product revenue was $9.6 billion, up seven percent, and service revenue was up three percent to $3.2 billion.
Infrastructure Platforms revenue grew by seven percent to bring in $7.44 billion. Applications revenue increased 10 percent to reach $1.3 billion, and Security revenue grew 12 percent to $627 million. The "other" category fell 18 percent to $232 million. Services, meanwhile, grew 3 percent to bring in $3.2 billion in revenue.
Recurring revenue was 32 percent of total revenue, up one point from a year ago, Cisco said.
"Our results demonstrate a combination of strong customer adoption of our latest innovations, the ongoing value customers see in our software and subscription offerings, and excellent execution across our customer segments and geographies," said Cisco CEO Chuck Robbins. "Our strategy is working and we believe that are well-positioned to capture growth across our portfolio with our pipeline of innovation."
For the current quarter, Wall Street is looking for non-GAAP earnings of 69 cents per share with $12.61 billion in revenue. Cisco responded with a revenue outlook that ranges from a five percent to seven percent increase from the year ago quarter, with EPS between 70 cents a share and 72 cents a share.