Cisco Systems (CSCO) 2021 Q3 Financial Performance Review

Cisco Systems Inc (NASDAQ:CSCO) traces its roots back to the early 1980s when a married couple named Len and Sandy Bosack came up with the idea of manufacturing a gateway server product on a commercial scale. Today, Cisco is a leading networking company. Its product portfolio ranges from routers and switches to enterprise software and security solutions (see most valuable technology companies).

The California-based tech giant recently announced its financial results for the third quarter. Cisco reported earnings of $2.86 billion, or 68 cents per share for the three months ended May 1, slightly higher than 65 cents per share in the comparable period of 2020. Excluding certain items, the company reported adjusted earnings of 83 cents per share, just ahead of the consensus forecast of 82 cents per share.

Revenue for the quarter rose 7 percent on a year-over-year basis to $12.8 billion, topping analysts’ average estimate of $12.57 billion. If we look at the performance of different segments, infrastructure revenue increased 6 percent to $6.83 billion, security revenue jumped 13 percent to $876 million, while applications revenue rose 5 percent to $1.43 billion in the quarter.

Speaking on the results, CEO Chuck Robbins said in a statement, “Cisco had a great quarter with strong demand across the business. We are confident in our strategy and our ability to lead the next phase of the recovery as our customers accelerate their adoption of hybrid work, digital transformation, cloud, and continued strong uptake of our subscription-based offerings.”

Looking forward, Cisco expects to report earnings in the range of 81 cents per share to 83 cents per share and revenue between $12.88 billion and $13.13 billion for the fourth quarter. Analysts on average were looking for earnings of 85 cents per share on sales of $12.85 billion.