NASDAQ$CSCO

Cisco Systems Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Cisco's Q2 2022 earnings were reported, showing revenue growth and strong demand.

Cisco reported strong second-quarter results with a 6% year-over-year increase in revenue, reaching $12.7 billion. GAAP EPS was $0.71, up 18% year over year, and Non-GAAP EPS was $0.84, up 6% year over year. The company saw robust demand across its business and made progress in its business model transformation.

  • Revenue reached $12.7 billion, a 6% increase year over year.
  • GAAP EPS was $0.71, up 18% year over year, while Non-GAAP EPS was $0.84, up 6% year over year.
  • Total Annualized Recurring Revenue (ARR) was $21.9 billion, up 11% year over year.
  • The dividend was increased by 3%, and an additional $15 billion was authorized for stock repurchase.

Headline financials

Total Revenue

$12.7B

Previous: $12B+6.4%
EPS (adj)

$0.84

Previous: $0.79+6.3%
Non-GAAP Gross Margin

65.5%

Previous: 66.9%-2.1%
Non-GAAP Operating Margin

34.3%

Previous: 34.4%-0.3%
Gross Margin GAAP

63.3%

Previous: 65.1%-2.8%
Operating Margin GAAP

27.4%

Previous: 26.9%+1.9%
Quarterly Dividend

$0.38

Previous: $0.37+2.7%
Capital Expenditures

-$232M

Previous: -$358M+35.2%
Free Cash Flow

$2.74B

Previous: $2.19B+25.3%
Net Income

$2.97B

Previous: $2.55B+16.8%
Operating Income

$3.49B

Previous: $3.22B+8.2%
Gross Profit

$8.05B

Previous: $7.78B+3.4%
Cash & Equivalents

$6.73B

Previous: $11.8B-42.9%
Total Assets

$94.3B

Previous: $95.6B-1.4%
Stock-Based Comp

$477M

Previous: $436M+9.4%

Revenue & EPS history

Cisco · Revenue · Quarterly

$12.7B

Q2 2022+6.4%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Cisco · $15.8B total across 5 segments · Q3 2026

  • Networking
    $8.82B
  • Services
    $3.72B
  • Security
    $2.01B
  • Collaboration
    $1.02B
  • Observability
    $269M

Forward guidance

Cisco provided guidance for Q3 FY 2022, projecting revenue growth between 3% and 5% year over year. Non-GAAP EPS is expected to be between $0.85 and $0.87. For the full fiscal year 2022, revenue is expected to grow between 5.5% and 6.5% year over year, with Non-GAAP EPS between $3.41 and $3.46.

Tailwinds

  • Revenue is expected to grow between 3% and 5% year over year.
  • Non-GAAP gross margin rate is expected to be between 63.5% and 64.5%.
  • Non-GAAP operating margin rate is expected to be between 32.5% and 33.5%.
  • Non-GAAP EPS is expected to be between $0.85 and $0.87.
  • Full year revenue is expected to grow between 5.5% and 6.5% year over year.

Headwinds

  • The third quarter of fiscal 2021 included an extra week.
  • GAAP EPS is estimated to be $0.70 to $0.74 for Q3 FY 2022.
  • Full year GAAP EPS is estimated to be $2.83 to $2.92.
  • Guidance does not include the effects of future acquisitions/divestitures.
  • Guidance does not include the effects of asset impairments, restructurings, (gains) and losses on equity investments and significant tax matters or other events.

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 Q2 2022

Historical avgQ2 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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