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Apr 25, 2020
Cisco Q3 2020 Earnings Report
Cisco's Q3 2020 earnings were released, showing a decrease in revenue but growth in non-GAAP EPS.
Key Takeaways
Cisco reported Q3 revenue of $12.0 billion, a decrease of 8% year over year. GAAP EPS was $0.65, down 6% year over year, while non-GAAP EPS was $0.79, up 1% year over year. The company is focused on supporting employees, customers, and partners during the COVID-19 pandemic and driving long-term profitable growth.
Revenue decreased by 8% year over year to $12.0 billion.
GAAP EPS decreased by 6% year over year to $0.65.
Non-GAAP EPS increased by 1% year over year to $0.79.
Cisco is focused on supporting stakeholders during the COVID-19 pandemic and driving digital transformation.
Cisco
Cisco
Cisco Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPJC Revenue
CapyFin.com Forward Guidance
Cisco expects revenue to decline by 8.5% to 11.5% year over year in Q4 2020. Non-GAAP EPS is expected to be between $0.72 and $0.74.
Positive Outlook
- Non-GAAP gross margin rate is expected to be 64% - 65%.
- Non-GAAP operating margin rate is expected to be 31.5% - 32.5%.
- Non-GAAP tax provision rate is expected to be 20%.
- Non-GAAP EPS is expected to be $0.72 - $0.74.
- Continued support of employees, customers, partners and communities, while positioning Cisco for the future.
Challenges Ahead
- Revenue is expected to decline by (8.5)% - (11.5)% Y/Y.
- business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions
- global economic conditions and uncertainties in the geopolitical environment
- overall information technology spending
- the growth and evolution of the Internet and levels of capital spending on Internet-based systems
Revenue & Expenses
Visualization of income flow from segment revenue to net income