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Jul 25, 2020
Cisco Q4 2020 Earnings Report
Cisco's Q4 results were reported, with revenue decreasing by 9% year over year and GAAP EPS increasing by 22%.
Key Takeaways
Cisco reported Q4 revenue of $12.2 billion, a decrease of 9% year-over-year. GAAP EPS increased by 22% to $0.62, while non-GAAP EPS decreased by 4% to $0.80. The company's strategy to shift to more than half of its revenue coming from software and services was achieved by the end of fiscal 2020.
Q4 revenue was $12.2 billion, a 9% decrease year-over-year.
GAAP EPS increased 22% year-over-year to $0.62.
Non-GAAP EPS decreased 4% year-over-year to $0.80.
Software subscriptions now make up 78% of software revenue.
Cisco
Cisco
Cisco Revenue by Segment
Cisco Revenue by Geographic Location
Forward Guidance
Cisco expects a revenue decline of 9% to 11% year-over-year for Q1 FY 2021, with non-GAAP EPS between $0.69 and $0.71.
Positive Outlook
- Non-GAAP gross margin rate: 64% - 65%
- Non-GAAP operating margin rate: 30% - 31%
- Non-GAAP tax provision rate: 19%
- Non-GAAP EPS: $0.69 - $0.71
Challenges Ahead
- Revenue decline of 9% - 11% year-over-year
- GAAP gross margin rate: 62% - 63%
- GAAP operating margin rate: 18% - 19%
- GAAP EPS: $0.41 - $0.47