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Apr 29, 2023

Cisco Q3 2023 Earnings Report

Cisco reported strong third-quarter results, driven by record revenue and double-digit growth in software and subscription revenue.

Key Takeaways

Cisco's Q3 2023 results showed strong revenue growth and EPS, driven by strength in software and subscription revenues. The company reported revenue of $14.6 billion, GAAP EPS of $0.78, and non-GAAP EPS of $1.00. Cisco is increasing full year guidance.

Revenue was $14.6 billion, up 14% year over year.

GAAP EPS was $0.78, up 7% year over year, and Non-GAAP EPS was $1.00, up 15% year over year.

Q3 FY 2023 operating cash flow was $5.2 billion, up 43%.

Total software revenue was up 18% year over year and software subscription revenue was up 17% year over year.

Total Revenue
$14.6B
Previous year: $12.8B
+13.5%
EPS
$1
Previous year: $0.87
+14.9%
Gross Margin (GAAP)
63.4%
Previous year: 63.3%
+0.2%
Gross Margin (Non-GAAP)
65.2%
Previous year: 65.3%
-0.2%
Operating Margin (GAAP)
27.1%
Previous year: 28.1%
-3.6%
Gross Profit
$9.23B
Previous year: $8.12B
+13.7%
Cash and Equivalents
$8.04B
Previous year: $6.95B
+15.7%
Free Cash Flow
$4.95B
Previous year: $3.56B
+39.2%
Total Assets
$97.5B
Previous year: $92.8B
+5.1%

Cisco

Cisco

Cisco Revenue by Geographic Location

Forward Guidance

Cisco provided guidance for Q4 FY 2023, expecting revenue growth between 14% and 16% year over year, non-GAAP gross margin rate between 64.5% and 65.5%, non-GAAP operating margin rate between 34% and 35%, and non-GAAP EPS between $1.05 and $1.07. For fiscal year 2023, the company expects revenue growth between 10% and 10.5% year over year and non-GAAP EPS between $3.80 and $3.82.

Positive Outlook

  • Revenue is expected to grow between 14% and 16% year over year.
  • Non-GAAP gross margin rate is expected to be between 64.5% and 65.5%.
  • Non-GAAP operating margin rate is expected to be between 34% and 35%.
  • Non-GAAP EPS is expected to be between $1.05 and $1.07.
  • Revenue is expected to grow between 10% and 10.5% year over year for fiscal year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income