Citing solid demand and a $15 billion order backlog, Cisco reported $12.8 billion in revenue for its third quarter of fiscal 2022, flat year over year; GAAP EPS $0.73, up 7% year over year, and Non-GAAP EPS $0.87, up 5% year over year.
The top-line revenue number missed earlier guidance of $13.34 billion.
- Total revenue was flat at $12.8 billion, with product revenue up 3% and service revenue down 8%.
- Revenue by geographic segment was: Americas up 5%, EMEA down 6%, and APJC down 6%.
- Product revenue performance was led by growth in Secure, Agile Networks up 4%, Internet for the Future up 6%, End-to-End Security up 7%, and Optimized Application Experiences up 8%. Collaboration was down 7%.
Cisco also cited progress on business model transformation with total Annualized Recurring Revenue (ARR) at $22.4 billion in the third quarter of fiscal 2022, up 11% year over year.
- Revenue: (1)% to (5.5)% decline year over year
- Earnings per Share: GAAP: $0.60 to $0.70; Non-GAAP: $0.76 to $0.84
FY 2022 Guidance:
- Revenue: 2% to 3% growth year over year
- Earnings per Share: GAAP: $2.75 to $2.85; Non-GAAP: $3.29 to $3.37
“We continued to see solid demand for our technologies and our business transformation is progressing well,” said Chuck Robbins, chair and CEO of Cisco. “While Covid lockdowns in China and the war in Ukraine impacted our revenue in the quarter, the fundamental drivers across our business are strong and we remain confident in the long term.”
“We delivered healthy earnings despite unanticipated disruptions through strong pricing and disciplined spend management,” said Scott Herren, CFO of Cisco. “Our product backlog is well over $15 billion and product ARR and RPO again grew double digits. The continued progress in our business model transformation reflects the success of our strategy and underpins our long-term confidence.”