Company Forecasts $55B-$56.2B Revenue in New Fiscal Year

  • Cisco Systems Inc. exceeded expectations with its latest quarterly results
  • Artificial intelligence demand contributed to order growth and earnings beat
  • Net income of $2.2 billion, or 54 cents a share
  • Adjusted EPS at 87 cents, above analysts’ expectations
  • Revenue for the period was $13.64 billion, ahead of FactSet consensus
  • Product revenue down 15%, services revenue up 6%
  • Restructuring program with up to $1 billion in severance costs
  • 9% growth in software revenue, 15% growth in subscription software revenue for the fiscal year
  • Revenue outlook for the new fiscal year: $55 billion to $56.2 billion
  • Adjusted EPS forecast: $3.52 to $3.58
  • Q1 revenue forecast: $13.65 billion to $13.85 billion, 86 cents to 88 cents in adjusted EPS
  • Analysts’ expectations surpassed for both revenue and earnings

Cisco Systems Inc. has reported better-than-expected quarterly results, citing artificial intelligence as a driver of order growth and earnings beat. The company posted a fiscal fourth-quarter net income of $2.2 billion or 54 cents per share, with adjusted EPS at 87 cents, surpassing analysts’ expectations. Revenue for the period was $13.64 billion, ahead of FactSet consensus. Product revenue declined by 15%, while services revenue increased by 6%. Cisco is undergoing a restructuring program with up to $1 billion in related costs. The company expects $55B-$56.2B revenue for the new fiscal year and an adjusted EPS of $3.52-$3.58. In the first quarter, they forecasted $13.65B-$13.85B revenue and 86 cents to 88 cents in adjusted EPS, surpassing analysts’ expectations.

Factuality Level: 9
Factuality Justification: The article provides accurate information about Cisco Systems Inc.’s latest quarterly results and financial performance, including net income, revenue, and growth in software and subscription software revenue. It also mentions the company’s restructuring program and outlook for the new fiscal year. The article is focused on the main topic without any significant digressions or personal opinions presented as facts.
Noise Level: 2
Noise Justification: The article provides relevant information about Cisco’s financial performance and highlights its growth in software revenue. It also mentions the company’s outlook for the new fiscal year. However, it lacks a deep analysis of long-term trends or possibilities, does not hold powerful people accountable, and does not offer significant actionable insights.
Public Companies: Cisco Systems Inc. (CSCO)
Key People: Chuck Robbins (Chief Executive)

Track all markets on TradingView

Financial Relevance: Yes
Financial Markets Impacted: Cisco Systems Inc. stock price
Financial Rating Justification: The article discusses Cisco’s financial performance, including its quarterly results and forecast for the new fiscal year, which can impact the company’s stock price and potentially affect investors in the financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
Move Size: The market move size mentioned in this article is that Cisco Systems Inc.’s shares were up nearly 5% in after-hours trading Wednesday.
Sector: Technology
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks

Reported publicly: www.marketwatch.com