Cisco reported revenue of $12.8 billion for its second fiscal quarter ended January 27, 2024, down 6% year over year. GAAP EPS was $0.65, down 3% year over year, and Non-GAAP EPS was $0.87, down 1% year over year.
- Revenue by geographic segment was: Americas down 4%, EMEA down 7%, and APJC was down 12%.
- Product revenue performance reflected growth in Security up 3%, Collaboration up 3% and Observability up 16%. Networking was down 12%.
“We delivered a solid second quarter with strong operating leverage and capital returns,” said Chuck Robbins, chair and CEO of Cisco. “We continue to align our investments to future growth opportunities. Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”
“Focused execution and operating discipline drove our solid top and bottom-line results and strong margins in Q2,” said Scott Herren, CFO of Cisco. “We are making good progress in our business model shift to more recurring revenue while remaining focused on financial discipline, operating leverage and shareholder returns, as evidenced by our increased dividend.”
On the quarterly conference call, Cisco executives noted a greater degree of caution and scrutiny by customers; longer intervals for customers to deploy the elevated levels of products shipped to them in recent quarters; and weak demand from telco and cable service provider customers. The company is looking to capitalize on the multibillion-dollar AI infrastructure opportunity.
