Summary
Cisco Systems, Inc. (CSCO) reported a solid fiscal year ending July 27, 2019, with total revenue increasing by 5% to $51.9 billion. The company demonstrated growth across its key product categories, with Infrastructure Platforms up 7%, Applications up 15%, and Security up 16%. This growth was supported by strategic priorities focused on accelerating innovation, increasing the value of the network through intent-based networking technologies, and transforming its business model towards software and subscription offerings. Despite a challenging and competitive market environment, Cisco showed improved profitability, with operating income increasing by 16% and operating income as a percentage of revenue improving to 27.4%. The company returned significant capital to shareholders through stock repurchases and dividends, underscoring a commitment to shareholder value. While the service provider market presented ongoing uncertainty, Cisco's diversified revenue streams and strategic investments in growth areas position it for continued resilience and future growth.
Financial Highlights
58 data points| Revenue | $51.90B |
| Cost of Revenue | $19.24B |
| Gross Profit | $32.67B |
| R&D Expenses | $6.58B |
| Operating Expenses | $18.45B |
| Operating Income | $14.22B |
| Interest Expense | $859.00M |
| Net Income | $11.62B |
| EPS (Basic) | $2.63 |
| EPS (Diluted) | $2.61 |
| Shares Outstanding (Basic) | 4.42B |
| Shares Outstanding (Diluted) | 4.45B |
Key Highlights
- 1Total revenue increased by 5% to $51.9 billion for the fiscal year ended July 27, 2019.
- 2Product revenue grew by 6%, driven by strong performance in Infrastructure Platforms (+7%), Applications (+15%), and Security (+16%).
- 3Operating income increased by 16% to $14.2 billion, with operating income as a percentage of revenue improving to 27.4%, reflecting improved profitability.
- 4The company continued to prioritize returning capital to shareholders, repurchasing approximately $20.6 billion of common stock and paying $6.0 billion in dividends during fiscal 2019.
- 5Cisco is transforming its business model to focus more on software and subscription-based offerings, which is expected to drive future recurring revenue.
- 6Despite a decline in product revenue in China (-16%), overall revenue growth was supported by strong performance in the Americas (+6%) and EMEA (+5%).
- 7The adoption of ASC 606 (Revenue from Contracts with Customers) impacted revenue recognition, generally accelerating it for certain software arrangements and sales to two-tier distributors.