NASDAQ$CSCO

Cisco Systems Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Cisco reported an 8% increase in revenue to $12.9 billion, with GAAP EPS up 37% to $0.70 and Non-GAAP EPS up 8% to $0.82.

Cisco reported strong Q1 results with revenue of $12.9 billion, up 8% year over year. GAAP EPS was $0.70, up 37% year over year, and Non-GAAP EPS was $0.82, up 8% year over year. The company saw strong demand across the business with total product order growth of 33% year-over-year.

  • Revenue increased by 8% year over year to $12.9 billion.
  • GAAP EPS increased 37% year over year to $0.70.
  • Non-GAAP EPS increased 8% year over year to $0.82.
  • Total Annualized Recurring Revenue was $21.6 billion, up 10% year over year.

Headline financials

Total Revenue

$12.9B

Previous: $11.9B+8.1%
EPS (adj)

$0.82

Previous: $0.76+7.9%
Non-GAAP Gross Margin

64.5%

Previous: 65.8%-2.0%
Non-GAAP Operating Margin

33.3%

Previous: 32.7%+1.8%
Gross Margin GAAP

62.4%

Previous: 63.6%-1.9%
Operating Margin GAAP

26.7%

Previous: 21.5%+24.2%
Quarterly Dividend

$0.37

Previous: $0.36+2.8%
Capital Expenditures

-$122M

Previous: -$171M+28.7%
Free Cash Flow

$2.86B

Previous: $2B+42.7%
Net Income

$2.98B

Previous: $2.17B+37.1%
Operating Income

$3.44B

Previous: $2.57B+33.8%
Gross Profit

$8.05B

Previous: $7.58B+6.2%
Cash & Equivalents

$7.62B

Previous: $10.8B-29.6%
Total Assets

$96B

Previous: $95B+1.0%
Stock-Based Comp

$453M

Previous: $438M+3.4%

Revenue & EPS history

Cisco · Revenue · Quarterly

$12.9B

Q1 2022+8.1%vs Q1 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Cisco · $11.5B total across 5 segments · Q1 2022

  • Networking
    $5.97B
  • Services
    $3.37B+0.9%
  • Collaboration
    $1.11B
  • Security
    $895M+3.9%
  • Observability
    $181M

Forward guidance

Cisco expects revenue to grow between 4.5% and 6.5% year over year, and non-GAAP EPS to be between $0.80 and $0.82 for the second quarter of fiscal 2022. For the full fiscal year 2022, Cisco anticipates revenue growth of 5% to 7% year over year and non-GAAP EPS between $3.38 and $3.45.

Tailwinds

  • Revenue growth of 4.5% - 6.5% Y/Y for Q2 FY 2022
  • Non-GAAP gross margin rate of 63.5% - 64.5% for Q2 FY 2022
  • Non-GAAP operating margin rate of 32.5% - 33.5% for Q2 FY 2022
  • Non-GAAP EPS of $0.80 - $0.82 for Q2 FY 2022
  • Revenue growth of 5% - 7% Y/Y for FY 2022

Headwinds

  • GAAP EPS of $0.64 - $0.68 for Q2 FY 2022
  • GAAP gross margin rate of 61.5% - 62.5% for Q2 FY 2022
  • GAAP operating margin rate of 26% - 27% for Q2 FY 2022
  • Assumes an effective tax provision rate of 18% for GAAP results
  • Assumes an effective tax provision rate of 19% for non-GAAP results

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.2%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.3%

Avg return

30 days after

51%

37 / 72 earnings

Positive

+12.3%

Q3 2013

Best reaction

-17.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.5%-0.9%+5.3%
Q2 2026-12.3%-10.2%-8.4%
Q1 2026-2.2%+4.6%+5.2%
Q4 2025+0.3%-5.2%-5.5%
Q3 2025+4.8%+3.5%+4.6%
Q2 2025+2.1%+3.3%-3.2%
Q1 2025-1.3%-2.4%-0.2%
Q4 2024+7.0%+10.2%+9.8%
Q3 2024-1.2%-3.7%-6.7%
Q2 2024-1.2%-2.4%-1.4%
Q1 2024-9.6%-9.2%-6.2%
Q4 2023+2.6%+3.9%+5.0%
Q3 2023+2.7%+4.0%+11.0%
Q2 2023+6.9%+6.4%+5.2%
Q1 2023+3.8%+6.1%+6.5%
Q4 2022+5.6%+2.0%-7.4%
Q3 2022-17.5%-14.3%-14.2%
Q2 2022+2.8%+5.4%+3.1%
Q1 2022-5.9%-4.2%+6.1%
Q4 2021+2.2%+4.5%+1.5%
Q3 2021-0.2%+0.9%-1.6%
Q2 2021-3.5%-3.4%-0.3%
Q1 2021+5.3%+6.5%+12.7%
Q4 2020-9.5%-10.8%-15.5%
Q3 2020+1.5%+4.3%+4.3%
Q2 2020-3.7%-4.4%-23.4%
Q1 2020-7.2%-6.7%-6.3%
Q4 2019-12.3%-8.0%-5.1%
Q3 2019+7.5%+7.7%+5.2%
Q2 2019+1.1%+3.2%+11.1%
Q1 2019+3.7%+1.4%+1.6%
Q4 2018+2.6%+5.0%+7.7%
Q3 2018-4.4%-3.8%-2.7%
Q2 2018+6.9%+7.5%+9.2%
Q1 2018+5.4%+7.2%+12.2%
Q4 2017-3.3%-4.4%+1.1%
Q3 2017-8.5%-7.9%-7.8%
Q2 2017+4.0%+4.4%+5.9%
Q1 2017-5.2%-5.2%-3.5%
Q4 2016-2.1%-1.6%-0.9%
Q3 2016+3.5%
Q2 2016+9.0%
Q1 2016-5.8%
Q4 2015+2.4%
Q3 2015-0.6%
Q2 2015+7.2%
Q1 2015+2.1%
Q4 2014-2.4%
Q3 2014+5.8%
Q2 2014-1.9%
Q1 2014-9.9%
Q4 2013-7.0%
Q3 2013+12.3%
Q2 2013+0.1%
Q1 2013+4.7%
Q4 2012+10.8%
Q3 2012-10.2%
Q2 2012-1.0%
Q1 2012-0.4%
Q4 2011+2.0%
Q3 2011-0.1%
Q2 2011-1.2%
Q1 2011+0.3%
Q4 2008-0.4%
Q4 2010-0.4%
Q3 2010+1.5%
Q3 2009+1.5%
Q2 2009+1.2%
Q2 2010+1.2%
Q1 2010-1.7%
Q4 2009-1.7%
Q1 2009-1.7%

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