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Jan 28, 2023
Cisco Q2 2023 Earnings Report
Cisco's Q2 2023 earnings were reported, demonstrating revenue growth and progress in business model transformation.
Key Takeaways
Cisco reported a 7% increase in revenue to $13.6 billion, with GAAP EPS at $0.67 and Non-GAAP EPS at $0.88. The company is making strides in its business model transformation, highlighted by a 6% increase in total annualized recurring revenue and a 10% increase in total software revenue.
Revenue reached $13.6 billion, a 7% increase year over year.
GAAP EPS was $0.67, while Non-GAAP EPS was $0.88, representing a decrease of 6% and an increase of 5% year over year, respectively.
Total annualized recurring revenue (ARR) increased by 6% year over year to $23.3 billion.
Cisco increased its quarterly dividend by 3% to $0.39 per share.
Revenue by Geographic Location
Forward Guidance
Cisco provided guidance for Q3 FY 2023 and full year FY 2023, expecting revenue growth and non-GAAP EPS. The Q3 FY 2023 guidance assumes an effective tax provision rate of 18% for GAAP and 19% for non-GAAP results, while the FY 2023 guidance assumes an effective tax provision rate of 20% for GAAP and 19% for non-GAAP results.
Positive Outlook
- Revenue: 11% – 13% growth Y/Y for Q3 FY 2023
- Non-GAAP gross margin rate: 63.5% – 64.5% for Q3 FY 2023
- Non-GAAP operating margin rate: 33% – 34% for Q3 FY 2023
- Non-GAAP EPS: $0.96 – $0.98 for Q3 FY 2023
- Revenue: 9% – 10.5% growth Y/Y for FY 2023
Challenges Ahead
- GAAP Gross Margin Rate: 61.5% - 62.5% for Q3 FY 2023
- GAAP Operating Margin Rate: 25.5% - 26.5% for Q3 FY 2023
- GAAP EPS: $0.74 - $0.79 for Q3 FY 2023
- GAAP EPS: $2.85 - $2.96 for FY 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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