On Wednesday, Cisco released financial first-quarter results that exceeded analysts’ expectations and raised its fiscal 2023 guidance.
In extended trading, the stock increased by around 5%.
Here is how the business fared:
Refinitiv said that earnings per share were 86 cents compared to analysts’ expectations of 84 cents.
Refinitiv also reported that revenue was $13.6 billion as opposed to analysts’ expectations of $13.3
billion. From a previous prediction of growth of 4% to 6%, the company now anticipates revenue growth in fiscal 2023 of 4.5% to 6.5%.
According to CFO Scott Herren, Cisco achieved “great performance,” and the company’s guiding prediction is in part due to a “easing supply scenario.”
Although Cisco’s results exceeded expectations, the company is still having trouble expanding as the technology industry quickly moves away from purchasing physical devices and toward cloud computing and subscription software. While the Nasdaq has decreased by 29% this year, Cisco’s stock price is down 27%.
Data-center networking switches are a part of Cisco’s main business category, which generated $6.68 billion in revenue, a 12% increase from the prior year.
Its second-largest division, Internet for the Future, saw a 5% decline in revenue to $1.3 billion. The division houses the routed optical networking equipment that the business acquired in 2021 when it acquired Acacia Communications.
Revenue from the Collaboration sector, which includes Webex, was $1.1 billion, down 2% from the previous year.
At 4:30 p.m. ET, Cisco will hold its quarterly conference call with investors.