Cisco reported third quarter revenue for the period ended April 29, 2023 of $14.6 billion, up 14% year-over-year. Net income (GAAP) was $3.2 billion or $0.78 per share, and non-GAAP net income of $4.1 billion or $1.00 per share, up 15% year-over-year.
"We once again delivered a strong quarter in a dynamic environment," said Chuck Robbins, chair and CEO of Cisco. "In Q3, we delivered record revenue and double-digit growth in both software and subscription revenue. As key technologies like cloud, AI and security continue to scale, Cisco's long-established leadership in networking, and the breadth of our portfolio position us well for the future."
"Our operational discipline and focused execution resulted in strong top and bottom-line growth, margin expansion and record operating cash flow," said Scott Herren, CFO of Cisco. "Our healthy backlog, recurring revenue streams and RPO, as well as the improving availability of supply, underpin our confidence to increase full year guidance."
Some highlights:
- Total revenue was up 14% at $14.6 billion, with product revenue up 17% and service revenue was up 3%.
- Revenue by geographic segment was: Americas up 13%, EMEA up 16%, and APJC was up 11%.
- Product revenue performance was led by growth in Secure, Agile Networks up 29%, Internet for the Future up 5%, End-to-End Security up 2%, and Optimized Application Experiences up 12%. Collaboration was down 13%.
- On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 65.2%, 64.5%, and 67.3%, respectively, as compared with 65.3%, 64.1%, and 68.9%, respectively, in the third quarter of fiscal 2022.
- Total gross margins by geographic segment were: 64.2% for the Americas, 66.6% for EMEA and 66.4% for APJC.
