Cisco Q2 2022 Earnings Report
Key Takeaways
Cisco reported strong second-quarter results with a 6% year-over-year increase in revenue, reaching $12.7 billion. GAAP EPS was $0.71, up 18% year over year, and Non-GAAP EPS was $0.84, up 6% year over year. The company saw robust demand across its business and made progress in its business model transformation.
Revenue reached $12.7 billion, a 6% increase year over year.
GAAP EPS was $0.71, up 18% year over year, while Non-GAAP EPS was $0.84, up 6% year over year.
Total Annualized Recurring Revenue (ARR) was $21.9 billion, up 11% year over year.
The dividend was increased by 3%, and an additional $15 billion was authorized for stock repurchase.
Cisco
Cisco
Cisco Revenue by Geographic Location
Forward Guidance
Cisco provided guidance for Q3 FY 2022, projecting revenue growth between 3% and 5% year over year. Non-GAAP EPS is expected to be between $0.85 and $0.87. For the full fiscal year 2022, revenue is expected to grow between 5.5% and 6.5% year over year, with Non-GAAP EPS between $3.41 and $3.46.
Positive Outlook
- Revenue is expected to grow between 3% and 5% year over year.
- Non-GAAP gross margin rate is expected to be between 63.5% and 64.5%.
- Non-GAAP operating margin rate is expected to be between 32.5% and 33.5%.
- Non-GAAP EPS is expected to be between $0.85 and $0.87.
- Full year revenue is expected to grow between 5.5% and 6.5% year over year.
Challenges Ahead
- The third quarter of fiscal 2021 included an extra week.
- GAAP EPS is estimated to be $0.70 to $0.74 for Q3 FY 2022.
- Full year GAAP EPS is estimated to be $2.83 to $2.92.
- Guidance does not include the effects of future acquisitions/divestitures.
- Guidance does not include the effects of asset impairments, restructurings, (gains) and losses on equity investments and significant tax matters or other events.
Revenue & Expenses
Visualization of income flow from segment revenue to net income