Cisco Systems Inc (NASDAQ:CSCO) reported financial results for the third quarter of fiscal 2024 after the market close on Wednesday. Here's a look at the key metrics from the quarter.
Q3 Earnings: Cisco's third-quarter revenue decreased 13% year-over-year to $12.7 billion, which beat the consensus estimate of $12.531 billion, according to Benzinga Pro. The company reported quarterly earnings of 88 cents per share, which beat analyst estimates of 82 cents per share.
Total subscription revenue came in at $6.9 billion. Total annualized recurring revenue came in at $29.2 billion, up 22% year-over-year. Cisco noted that its Splunk acquisition contributed $413 million to total revenue in the quarter.
"We delivered a solid Q3 performance in what remains a dynamic environment. Our unique ability to bring together networking, security, observability, and data enables Cisco to offer our customers unrivaled digital resilience for the AI era," said Chuck Robbins, chair and CEO of Cisco.
Management Update: Cisco announced that it has named Splunk chief Gary Steele president of Go-to-Market, effective immediately. The company also announced that Jeff Sharritts, Cisco's chief customer and partner officer, will depart the company after 24 years. Sharritts will remain with Cisco until mid-July to help with the transition.
Outlook: Cisco expects fiscal fourth-quarter revenue to be between $13.4 billion and $13.6 billion versus estimates of $13.23 billion. Cisco sees fourth-quarter adjusted earnings in the range of 84 cents to 86 cents per share versus estimates of 85 cents per share.
Cisco also guided for full-year revenue of $53.6 billion to $53.8 billion versus estimates of $53.14 billion. The company sees full-year adjusted earnings in the range of $3.69 to $3.71 per share versus estimates of $3.67 per share.
"Customers are consuming the equipment shipped over the last few quarters in line with our expectations and we are seeing stabilization of demand as a result. The addition of Splunk to our product line will be a catalyst for further growth," said Scott Herren, CFO of Cisco.
Management will hold a conference call to discuss these results at 4:30 p.m. ET.
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CSCO Price Action: Cisco shares closed Wednesday up 1.47%. The stock was up another 5.29% after hours at $52.33 at the time of publication, according to Benzinga Pro.
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