Shares of Cisco Systems (NASDAQ:CSCO) gained in after-hours trading after the company reported earnings for its second quarter of Fiscal Year 2023. Earnings per share came in at $0.88, which beat analysts’ consensus estimate of $0.85 per share. Sales increased by 7.1% year-over-year, with revenue hitting $13.6 billion. This beat analysts’ expectations of $13.41 billion.
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Cisco’s returns featured a total annualized recurring revenue (ARR) that hit $23.3 billion, which was up 6% against this time last year. Further, its product ARR gained 11% year-over-year. Software subscription revenue was up 15%, and total software revenue increased by 10%. Cisco also announced a 3% hike to its dividend.
Looking forward, management now expects revenue for Q3 2023 to be in the range of 11% to 13% higher. EPS is expected to be in the range of $0.96 – $0.98 on a non-GAAP basis. For reference, analysts were expecting a 5.85% jump in revenue and $0.89 in EPS.
Overall, Wall Street has a consensus price target of $54.45 on Cisco Systems, implying 12.57% upside potential, as indicated by the graphic above.
