Citing robust demand across its business lines, Cisco reported revenue of $12.7 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.0 billion or $0.71 per share, and non-GAAP net income of $3.5 billion or $0.84 per share for its second fiscal quarter, ended January 29, 2022. Revenue was up 6% year over year. On a GAAP basis, total gross margin, product gross margin, and service gross margin were 63.3%, 61.8%, and 67.3%, respectively, as compared with 65.1%, 64.5%, and 66.6%, respectively, in the second quarter of fiscal 2021.
Cisco also reported solid progress on business model transformation with total Annualized Recurring Revenue (ARR) at $21.9 billion in the second quarter of fiscal 2022, up 11% year over year.
"We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Cisco's innovation," said Chuck Robbins, chair and CEO of Cisco. "Our robust order strength, record backlog and double-digit growth in annual recurring revenue position us well to deliver growth."
Some highlights:
- Total revenue was up 6% at $12.7 billion, with product revenue up 9% and service revenue down 1%.
- Revenue by geographic segment was: Americas up 3%, EMEA up 11%, and APJC up 13%.
- Product revenue performance was led by growth in Secure, Agile Networks up 7%, Internet for the Future up 42%, End-to-End Security up 7%, and Optimized Application Experiences up 12%.
- Hybrid Work was down 9%.
