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Jul 31, 2021

Cisco Q4 2021 Earnings Report

Cisco's Q4 2021 performance was marked by strong revenue growth and double-digit order increases across all customer markets and geographies.

Key Takeaways

Cisco reported a strong Q4 and fiscal year 2021, with Q4 revenue up 8% year-over-year to $13.1 billion and FY21 revenue reaching $49.8 billion. The company saw double-digit order growth across all customer markets and geographies, alongside continued progress in transforming its business towards more software and subscription-based offerings.

Cisco's Q4 revenue increased by 8% year-over-year, reaching $13.1 billion.

The company's GAAP EPS for Q4 was $0.71, a 15% increase year-over-year, while non-GAAP EPS was $0.84, a 5% increase year-over-year.

Cisco's FY21 revenue increased by 1% year-over-year, totaling $49.8 billion.

The company achieved $4 billion in software revenue in Q4, up 6% year-over-year, with subscription revenue up 9% year-over-year.

Total Revenue
$13.1B
Previous year: $12.2B
+8.0%
EPS
$0.84
Previous year: $0.8
+5.0%
Gross Margin (GAAP)
63.6%
Previous year: 63.2%
+0.6%
Gross Margin (Non-GAAP)
65.6%
Previous year: 65%
+0.9%
Operating Margin (GAAP)
27.2%
Previous year: 26.7%
+1.9%
Gross Profit
$8.34B
Previous year: $7.68B
+8.6%
Cash and Equivalents
$9.18B
Previous year: $11.8B
-22.3%
Free Cash Flow
$4.34B
Previous year: $3.59B
+20.8%
Total Assets
$97.5B
Previous year: $94.9B
+2.8%

Cisco

Cisco

Cisco Revenue by Geographic Location

Forward Guidance

Cisco provided guidance for Q1 FY 2022 and full year FY 2022, expecting revenue growth and EPS within specified ranges.

Positive Outlook

  • Q1 FY 2022 Revenue: 7.5% to 9.5% growth year over year
  • Q1 FY 2022 Non-GAAP gross margin rate: 63.5% - 64.5%
  • Q1 FY 2022 Non-GAAP operating margin rate: 31.5% - 32.5%
  • Q1 FY 2022 Non-GAAP EPS: $0.79 - $0.81
  • FY 2022 Revenue: 5% to 7% growth year over year

Challenges Ahead

  • Q1 FY 2022 GAAP EPS: $0.61 to $0.66
  • FY 2022 GAAP EPS: $2.72 to $2.84
  • Guidance does not include effects of future acquisitions/divestitures
  • Guidance does not include effects of asset impairments
  • Guidance does not include effects of restructurings and significant tax matters

Revenue & Expenses

Visualization of income flow from segment revenue to net income