•
Oct 30, 2021

Cisco Q1 2022 Earnings Report

Cisco reported an 8% increase in revenue to $12.9 billion, with GAAP EPS up 37% to $0.70 and Non-GAAP EPS up 8% to $0.82.

Key Takeaways

Cisco reported strong Q1 results with revenue of $12.9 billion, up 8% year over year. GAAP EPS was $0.70, up 37% year over year, and Non-GAAP EPS was $0.82, up 8% year over year. The company saw strong demand across the business with total product order growth of 33% year-over-year.

Revenue increased by 8% year over year to $12.9 billion.

GAAP EPS increased 37% year over year to $0.70.

Non-GAAP EPS increased 8% year over year to $0.82.

Total Annualized Recurring Revenue was $21.6 billion, up 10% year over year.

Total Revenue
$12.9B
Previous year: $11.9B
+8.1%
EPS
$0.82
Previous year: $0.76
+7.9%
Gross Margin (GAAP)
62.4%
Previous year: 63.6%
-1.9%
Gross Margin (Non-GAAP)
64.5%
Previous year: 65.8%
-2.0%
Operating Margin (GAAP)
26.7%
Previous year: 21.5%
+24.2%
Gross Profit
$8.05B
Previous year: $7.58B
+6.2%
Cash and Equivalents
$7.62B
Previous year: $10.8B
-29.6%
Free Cash Flow
$3.31B
Previous year: $3.93B
-15.8%
Total Assets
$96B
Previous year: $95B
+1.0%

Cisco

Cisco

Cisco Revenue by Segment

Cisco Revenue by Geographic Location

Forward Guidance

Cisco expects revenue to grow between 4.5% and 6.5% year over year, and non-GAAP EPS to be between $0.80 and $0.82 for the second quarter of fiscal 2022. For the full fiscal year 2022, Cisco anticipates revenue growth of 5% to 7% year over year and non-GAAP EPS between $3.38 and $3.45.

Positive Outlook

  • Revenue growth of 4.5% - 6.5% Y/Y for Q2 FY 2022
  • Non-GAAP gross margin rate of 63.5% - 64.5% for Q2 FY 2022
  • Non-GAAP operating margin rate of 32.5% - 33.5% for Q2 FY 2022
  • Non-GAAP EPS of $0.80 - $0.82 for Q2 FY 2022
  • Revenue growth of 5% - 7% Y/Y for FY 2022

Challenges Ahead

  • GAAP EPS of $0.64 - $0.68 for Q2 FY 2022
  • GAAP gross margin rate of 61.5% - 62.5% for Q2 FY 2022
  • GAAP operating margin rate of 26% - 27% for Q2 FY 2022
  • Assumes an effective tax provision rate of 18% for GAAP results
  • Assumes an effective tax provision rate of 19% for non-GAAP results

Revenue & Expenses

Visualization of income flow from segment revenue to net income