Summary
Cisco Systems, Inc. reported a 6% year-over-year increase in total revenue for the first quarter of fiscal year 2023, reaching $13.6 billion. This growth was primarily driven by an 8% rise in product revenue, while service revenue remained flat. The company continues to navigate supply chain constraints, which impacted product gross margins negatively due to increased costs, though this was partially offset by favorable pricing and product mix. Diluted earnings per share saw a 7% decrease compared to the prior year, reflecting a 10% decline in net income, though this was partially mitigated by a reduced share count. Despite ongoing macroeconomic uncertainties and persistent component shortages impacting lead times and costs, Cisco demonstrated resilience. The company is actively managing these supply chain challenges and is focused on its strategic priorities of reimagining applications, powering hybrid work, transforming infrastructure, and securing the enterprise. Cisco's strong cash flow generation remains a key strength, enabling continued investment in innovation and commitment to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
54 data points| Revenue | $13.63B |
| Cost of Revenue | $5.29B |
| Gross Profit | $8.35B |
| R&D Expenses | $1.78B |
| Operating Expenses | $4.81B |
| Operating Income | $3.54B |
| Interest Expense | $100.00M |
| Net Income | $2.67B |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.65 |
| Shares Outstanding (Basic) | 4.11B |
| Shares Outstanding (Diluted) | 4.12B |
Key Highlights
- 1Total revenue increased by 6% to $13.6 billion compared to the prior year's first quarter.
- 2Product revenue grew by 8%, while service revenue remained flat year-over-year.
- 3Product gross margin decreased by 2.3 percentage points, primarily due to increased costs related to supply constraints.
- 4Diluted earnings per share decreased by 7% to $0.65, driven by lower net income.
- 5Operating income as a percentage of revenue decreased to 26.0% from 26.7% in the prior year.
- 6The company has a substantial remaining performance obligation of $30.9 billion, providing revenue visibility.
- 7Cisco continues to return capital to shareholders, paying $1.56 billion in dividends and repurchasing $0.5 billion in common stock during the quarter.