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Oct 29, 2022
Cisco Q1 2023 Earnings Report
Cisco's Q1 2023 earnings were released, showing revenue growth and progress in business model transformation.
Key Takeaways
Cisco reported a 6% increase in revenue to $13.6 billion for Q1 FY2023, with GAAP EPS at $0.65 and non-GAAP EPS at $0.86. The company saw growth in annualized recurring revenue and made progress in its business transformation.
Revenue reached $13.6 billion, a 6% increase year over year.
GAAP EPS was $0.65, down 7% year over year, while Non-GAAP EPS was $0.86, up 5% year over year.
Total annualized recurring revenue (ARR) was $23.2 billion, up 7% year over year.
Remaining performance obligations (RPO) reached $30.9 billion, up 3% year over year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cisco expects revenue growth between 4.5% and 6.5% year over year for both Q2 FY2023 and full year FY2023. Non-GAAP EPS is projected to be $0.84 to $0.86 for Q2 FY2023 and $3.51 to $3.58 for FY2023.
Positive Outlook
- Revenue growth of 4.5% - 6.5% Y/Y is expected for Q2 FY2023.
- Non-GAAP gross margin rate is guided at 63% - 64% for Q2 FY2023.
- Non-GAAP operating margin rate is projected at 31.5% - 32.5% for Q2 FY2023.
- Non-GAAP EPS is expected to be $0.84 - $0.86 for Q2 FY2023.
- Revenue growth of 4.5% - 6.5% Y/Y is expected for FY 2023.
Challenges Ahead
- GAAP EPS is estimated to be $0.59 to $0.64 for Q2 FY2023.
- Restructuring plan with pre-tax charges of approximately $600 million.
- Approximately $300 million of restructuring charges expected in Q2 FY2023.
- Approximately $200 million of restructuring charges expected during the second half of fiscal 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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