Cisco management expressed enough confidence in its cloud and AI opportunities to increase its full-year guidance following its fiscal 3Q earnings beat.
For fiscal 2023, the multinational technology company estimates earnings to be between $2.93 and $2.98, citing optimism about its “performance and future prospects” in a release.
Following the release of its third-quarter results for the period ending April 29, 2023, where the company reported a 14% increase in revenue, CEO Chuck Robbins expressed satisfaction with the company's performance in a dynamic environment.
“As key technologies like cloud, AI and security continue to scale, Cisco's long-established leadership in networking, and the breadth of our portfolio position us well for the future,” Robbins said.
Total revenue for the quarter came in at $14.6 billion, ahead of the $14.4 billion estimated by analysts. Net income of $1 per share also beat Street expectations of $0.97.
Cisco experienced double-digit growth in both software and subscription revenue during the quarter.
Geographically, Cisco’s Americas revenue increased by 13%, EMEA by 16%, and APJC by 11%. Product revenue showed strong growth in Secure, Agile Networks (29%), Internet for the Future (5%), End-to-End Security (2%), and Optimized Application Experiences (12%). However, Collaboration revenue decreased by 13%.
Despite the earnings beat, shares of Cisco were down by just under 0.5% in aftermarket trading in New York.
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