Cisco has announced its quarterly results, beating analyst estimates thanks to strong services and security.
Cisco reported revenue of $11.9 billion, with net income coming in at $2.2 billion. The company’s $0.76 earnings per share was higher than consensus forecasts of $0.70.
“Cisco is off to a solid start in fiscal 2021 and we are encouraged by the signs of improvement in our business as we continue to navigate the pandemic and other macro uncertainties,” said Chuck Robbins, chairman and CEO of Cisco. “Our focus is on winning with a differentiated innovative portfolio, long-term growth and being a trusted technology partner offering choice and flexibility to our customers. We see many great opportunities ahead as every company in every industry is accelerating its digital-first strategy.”
In particular, the company has been working to transform its business to more of a service-oriented approach, thereby insulating it from pandemic-like situations. Service revenue was up 2%, while Security was up 6%, leading Product revenue.
“Our Q1 results reflect good execution with strong margins in a challenging environment,” said Kelly Kramer, CFO of Cisco. “We continued to transform our business through more software offerings and subscriptions, driving 10% year over year growth in remaining performance obligations. We delivered strong growth in operating cash flow and returned $2.3 billion to shareholders.”