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Jul 30, 2022

Cisco Q4 2022 Earnings Report

Cisco's Q4 performance led to a strong end to fiscal year 2022, with revenue flat year-over-year and EPS decreasing slightly.

Key Takeaways

Cisco reported Q4 revenue of $13.1 billion, flat year-over-year. GAAP EPS was $0.68, a decrease of 4%, and non-GAAP EPS was $0.83, a decrease of 1%. The company's full-year product orders and backlog are at record highs, reflecting strong demand.

Q4 revenue was $13.1 billion, flat year over year.

GAAP EPS was $0.68, a decrease of 4% year over year.

Non-GAAP EPS was $0.83, a decrease of 1% year over year.

Full year product orders and backlog are at record highs.

Total Revenue
$13.1B
Previous year: $13.1B
-0.2%
EPS
$0.83
Previous year: $0.84
-1.2%
Gross Margin (GAAP)
61.3%
Previous year: 63.6%
-3.6%
Gross Margin (Non-GAAP)
63.3%
Previous year: 65.6%
-3.5%
Operating Margin (GAAP)
26.2%
Previous year: 27.2%
-3.7%
Gross Profit
$8.03B
Previous year: $8.34B
-3.8%
Cash and Equivalents
$7.08B
Previous year: $9.18B
-22.8%
Free Cash Flow
$3.54B
Previous year: $4.34B
-18.5%
Total Assets
$94B
Previous year: $97.5B
-3.6%

Cisco

Cisco

Cisco Revenue by Segment

Cisco Revenue by Geographic Location

Forward Guidance

Cisco provided guidance for Q1 FY 2023, expecting revenue growth of 2% to 4% year over year and non-GAAP EPS of $0.82 to $0.84. For FY 2023, they anticipate revenue growth of 4% to 6% and non-GAAP EPS of $3.49 to $3.56.

Positive Outlook

  • Revenue: 2% - 4% growth Y/Y
  • Non-GAAP gross margin rate 63% - 64%
  • Non-GAAP operating margin rate 31.5% - 32.5%
  • Non-GAAP EPS $0.82 - $0.84
  • Revenue: 4% - 6% growth Y/Y

Challenges Ahead

  • Significant supply constraints
  • Changes in customer order patterns or customer mix
  • Insufficient, excess or obsolete inventory
  • Variability of component costs
  • Our ability to manage financial risk, and to manage expenses during economic downturns

Revenue & Expenses

Visualization of income flow from segment revenue to net income