Cisco Q1 Earnings Highlights: Revenue And EPS Beat, Record Quarterly Revenue, Guidance And More

Technology giant Cisco Systems CSCO reported first-quarter financial results after the market close Wednesday. Here are the key highlights.

What Happened: Cisco reported first-quarter revenue of $13.6 billion, up 6% year-over-year. The revenue total came in ahead of a Street estimate of $13.3 billion, according to data from Benzinga Pro.

Earnings per share for the first quarter were 86 cents, beating a Street estimate of 84 cents.

The company said annualized recurring revenue reached $23.2 billion, up 7% year-over-year.

Software revenue for the company was up 5% year-over-year in the third quarter. Service revenue was flat in the first quarter. Subscription revenue for the company was up 11% year-over-year.

The company said revenue in the Americas segment was up 5% year-over-year, followed by the EMEA region up 11% and the APJC region flat.

“Our fiscal 2023 is off to a good start as we delivered the largest quarterly revenue and second highest quarterly non-GAAP earnings per share in our history,” Cisco CEO Chuck Robbins said. “These results demonstrate the relevance of our strategy, our differentiated innovation, and our unique position to help our customers become more resilient.”

Related Link: Cisco Systems Q1 Earnings Preview: Will Investors Be Rewarded With Good Results And Good Guidance? 

What’s Next: Chief Financial Officer Scott Herren said Cisco has a backlog of more than $23 billion toward recurring revenue. The company has great “visibility and predictability” for financials going forward, Herren added.

Cisco is guiding for second-quarter revenue to be up 4.5% to 6.5% on a year-over-year basis. Second-quarter earnings per share are expected to be in a range of 84 cents to 86 cents versus a Street estimate of 85 cents, according to Benzinga Pro.

The company is guiding for full year revenue to be up 4.5% to 6.5% on a year-over-year basis. Full year earnings per share are expected to be in a range of $3.51 to $3.58 versus a Street estimate of $3.53.

CSCO Price Action: Cisco shares are up 5% to $46.50 in after hours trading Wednesday.

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