Key Takeaways
- Cisco Systems reported better-than-expected revenue in its third-quarter earnings announcement Wednesday after the bell.
- The company also raised its full-year revenue guidance.
- The tech company’s shares rose in extended trading following the announcement.
Cisco Systems (CSCO) shares surged over 4% in extended trading Wednesday after the company reported third-quarter revenue exceeding analysts’ expectations and raised its full-year guidance.
Cisco’s revenue for the fourth quarter of fiscal 2024 was $12.7 billion, a 13% year-over-year decline but higher than analysts anticipated, according to estimates compiled by Visible Alpha. Net income came in at $1.88 billion or 46 cents per share, down from $3.21 billion or 78 cents per share in the year-ago quarter, and below expectations. However, adjusted earnings per share stripping out one-time items came in at 88 cents, beating expectations, though that figure also represented a decline from the year-ago period.
Cisco noted it completed its acquisition of Splunk, an enterprise data infrastructure solutions provider, during the quarter, which had a positive impact on Cisco’s revenue but negatively impacted its earnings. “The addition of Splunk to our product line will be a catalyst for further growth,” Cisco CFO Scott Herren said.
| Q3 FY 2024 | Analyst Estimates for Q3 FY 2024 | Q3 FY 2023 | |
| Revenue | $12.7 billion | $12.54 billion | $14.57 billion |
| Diluted Earnings Per Share | 46 cents | 59 cents | 78 cents |
| Net Income | $1.88 billion | $2.4 billion | $3.21 billion |
The company raised its full-year revenue guidance to between $53.6 billion and $53.8 billion, up from the range of $51.5 billion to $52.5 billion it issued in the second quarter and above the $53.24 billion analysts projected.
“We delivered a solid Q3 performance in what remains a dynamic environment,” Cisco CEO Chuck Robbins said, adding that the company’s “unique ability to bring together networking, security, observability, and data enables Cisco to offer our customers unrivaled digital resilience for the AI era.”
Cisco shares were 4.3% higher at $51.80 in extended trading as of 5:40 p.m. ET Wednesday following the release.