Shares of Cisco (NASDAQ:CSCO) slipped in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $1.00, which beat analysts’ consensus estimate of $0.97 per share. Sales increased by 13.5% year-over-year, with revenue hitting $14.57 billion. This beat analysts’ expectations of $14.36 billion.
Cisco’s software subscription revenue was up 17% against this time last year, and its total software revenue was up 18%. Annualized recurring revenue for products was up 10%, and total annualized recurring revenue hit $23.8 billion, which was up 6% year-over-year. Its remaining performance obligations, meanwhile, were also up 6% and came in at $32.1 billion.
Cisco management also offered some guidance going forward for the fourth quarter of 2023. It looks for revenue growth between 14% and 16% year-over-year, with earnings per share between $1.05 and $1.07, beating analyst expectations of $1.04. Meanwhile, for Fiscal Year 2023, Cisco looks for 10% to 10.5% revenue growth with earnings per share between $3.80 and $3.82. That also readily beats analyst expectations, which came in at $3.75 per share.
Overall, Wall Street has a consensus price target of $57.78 on Cisco stock, implying 21.39% upside potential, as indicated by the graphic above.