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May 01, 2021

Cisco Q3 2021 Earnings Report

Cisco's Q3 2021 results reflected strong demand and growth.

Key Takeaways

Cisco reported a strong third quarter with revenue of $12.8 billion, up 7% year over year. GAAP EPS was $0.68 and Non-GAAP EPS was $0.83, each up 5% year over year. The company saw strong product order growth and continued momentum in transforming its business to software and subscriptions.

Revenue reached $12.8 billion, a 7% increase year over year.

GAAP EPS and Non-GAAP EPS both increased by 5% year over year, reaching $0.68 and $0.83 respectively.

Total product order growth increased 10% year-over-year

Software revenue sold as a subscription was 81%, up from 76% last quarter.

Total Revenue
$12.8B
Previous year: $12B
+6.8%
EPS
$0.83
Previous year: $0.79
+5.1%
Gross Margin (GAAP)
63.9%
Previous year: 64.9%
-1.5%
Gross Margin (Non-GAAP)
66%
Previous year: 66.6%
-0.9%
Operating Margin (GAAP)
27.1%
Previous year: 28.5%
-4.9%
Gross Profit
$8.19B
Previous year: $7.77B
+5.3%
Cash and Equivalents
$7.35B
Previous year: $10.4B
-29.1%
Free Cash Flow
$3.71B
Previous year: $4.07B
-8.8%
Total Assets
$93.9B
Previous year: $91.4B
+2.7%

Cisco

Cisco

Cisco Revenue by Segment

Cisco Revenue by Geographic Location

Forward Guidance

Cisco expects to achieve revenue growth between 6% and 8% year over year in Q4 2021. Non-GAAP EPS is expected to be between $0.81 and $0.83.

Positive Outlook

  • Revenue: 6% - 8% growth Y/Y
  • Non-GAAP gross margin rate 64% - 65%
  • Non-GAAP operating margin rate 32% - 33%
  • Non-GAAP tax provision rate 19%
  • Non-GAAP EPS $0.81 - $0.83

Revenue & Expenses

Visualization of income flow from segment revenue to net income