NASDAQ$CSCO

Cisco Systems Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Cisco's Q4 earnings exceeded expectations, driven by strong growth in revenue and EPS.

Cisco reported a strong Q4 with revenue of $15.2 billion, up 16% year over year, and GAAP EPS of $0.97, up 43% year over year. Non-GAAP EPS was $1.14, up 37% year over year. The company saw solid customer demand and progress on business model transformation.

  • Q4 revenue reached $15.2 billion, a 16% increase year over year.
  • GAAP EPS increased by 43% year over year to $0.97.
  • Non-GAAP EPS rose by 37% year over year to $1.14.
  • Operating cash flow for Q4 was $6.0 billion, up 62% year over year.

Headline financials

Total Revenue

$15.2B

Previous: $13.1B+16.0%
EPS (adj)

$1.14

Previous: $0.83+37.3%
Non-GAAP Gross Margin

65.9%

Previous: 63.3%+4.1%
Non-GAAP Operating Margin

35.4%

Previous: 32.4%+9.3%
Gross Margin GAAP

64.1%

Previous: 61.3%+4.6%
Operating Margin GAAP

28.0%

Previous: 26.2%+6.9%
Quarterly Dividend

$0.39

Previous: $0.38+2.6%
Capital Expenditures

$233M

Previous: $139M+67.6%
Free Cash Flow

$6B

Previous: $3.54B+69.6%
Net Income

$4B

Previous: $2.8B+42.9%
Operating Income

$4.25B

Previous: $3.4B+25.1%
Gross Profit

$9.75B

Previous: $8.03B+21.5%
Cash & Equivalents

$10.1B

Previous: $7.08B+43.0%
Total Assets

$102B

Previous: $94B+8.4%
Stock-Based Comp

$633M

Previous: $479M+32.2%

Revenue & EPS history

Cisco · Revenue · Quarterly

$15.2B

Q4 2023+16%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Cisco · $13.9B total across 5 segments · Q4 2023

  • Networking
    $8.13B+33.3%
  • Services
    $3.55B+4.1%
  • Collaboration
    $1.02B-12.1%
  • Security
    $987M+0.3%
  • Observability
    $214M+15.7%

Forward guidance

Cisco provided guidance for Q1 FY 2024 with revenue expected to be between $14.5 billion and $14.7 billion and non-GAAP EPS between $1.02 and $1.04. For FY 2024, revenue is expected to be between $57.0 billion and $58.2 billion and non-GAAP EPS between $4.01 and $4.08.

Tailwinds

  • Revenue for Q1 FY 2024 is projected to be $14.5 billion - $14.7 billion.
  • Non-GAAP gross margin rate for Q1 FY 2024 is expected to be 65% - 66%.
  • Non-GAAP operating margin rate for Q1 FY 2024 is anticipated to be 34% - 35%.
  • Non-GAAP EPS for Q1 FY 2024 is forecasted to be $1.02 - $1.04.
  • Revenue for FY 2024 is expected to be $57.0 billion - $58.2 billion.

Headwinds

  • GAAP EPS for Q1 FY 2024 is estimated to be $0.79 to $0.84.
  • Guidance does not include effects of future acquisitions/divestitures.
  • Guidance excludes asset impairments.
  • Guidance excludes Russia-Ukraine war costs.
  • Guidance excludes restructurings, (gains) and losses on 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 Q4 2023

Historical avgQ4 2023

-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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