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Jul 29, 2023

Cisco Q4 2023 Earnings Report

Cisco's Q4 earnings exceeded expectations, driven by strong growth in revenue and EPS.

Key Takeaways

Cisco reported a strong Q4 with revenue of $15.2 billion, up 16% year over year, and GAAP EPS of $0.97, up 43% year over year. Non-GAAP EPS was $1.14, up 37% year over year. The company saw solid customer demand and progress on business model transformation.

Q4 revenue reached $15.2 billion, a 16% increase year over year.

GAAP EPS increased by 43% year over year to $0.97.

Non-GAAP EPS rose by 37% year over year to $1.14.

Operating cash flow for Q4 was $6.0 billion, up 62% year over year.

Total Revenue
$15.2B
Previous year: $13.1B
+16.0%
EPS
$1.14
Previous year: $0.83
+37.3%
Gross Margin (GAAP)
64.1%
Previous year: 61.3%
+4.6%
Gross Margin (Non-GAAP)
65.9%
Previous year: 63.3%
+4.1%
Operating Margin (GAAP)
28%
Previous year: 26.2%
+6.9%
Gross Profit
$9.75B
Previous year: $8.03B
+21.5%
Cash and Equivalents
$10.1B
Previous year: $7.08B
+43.0%
Free Cash Flow
$6B
Previous year: $3.54B
+69.6%
Total Assets
$102B
Previous year: $94B
+8.4%

Cisco

Cisco

Cisco Revenue by Segment

Cisco Revenue by Geographic Location

Forward Guidance

Cisco provided guidance for Q1 FY 2024 with revenue expected to be between $14.5 billion and $14.7 billion and non-GAAP EPS between $1.02 and $1.04. For FY 2024, revenue is expected to be between $57.0 billion and $58.2 billion and non-GAAP EPS between $4.01 and $4.08.

Positive Outlook

  • Revenue for Q1 FY 2024 is projected to be $14.5 billion - $14.7 billion.
  • Non-GAAP gross margin rate for Q1 FY 2024 is expected to be 65% - 66%.
  • Non-GAAP operating margin rate for Q1 FY 2024 is anticipated to be 34% - 35%.
  • Non-GAAP EPS for Q1 FY 2024 is forecasted to be $1.02 - $1.04.
  • Revenue for FY 2024 is expected to be $57.0 billion - $58.2 billion.

Challenges Ahead

  • GAAP EPS for Q1 FY 2024 is estimated to be $0.79 to $0.84.
  • Guidance does not include effects of future acquisitions/divestitures.
  • Guidance excludes asset impairments.
  • Guidance excludes Russia-Ukraine war costs.
  • Guidance excludes restructurings, (gains) and losses on investments and significant tax matters or other events.

Revenue & Expenses

Visualization of income flow from segment revenue to net income