Cisco beat its first quarter earnings expectations, while also topping revenue estimates.
The IT and networking behemoth’s adjusted non-GAAP earnings for the three months ending in September fell -9.5% year-over-year to 76 cents per share, but was six cents ahead of the Street consensus forecast of 70 cents per share.
Revenues dropped -9.6% year-over-year to $11.9 billion, but beat the Street expectation of $11.85 billion. Products revenue of $8.58 billion were -13.3% lower from the year-ago quarter. But services revenues rose +2% year-over-year to $3.34 billion.
Looking ahead, Cisco expects full-year revenues to be -0.2% lower from last year. It forecasts non-GAAP earnings in the region of 74 cents to 76 cents per share, compared to the consensus forecast of 73 cents per share (Refinitiv poll). Cisco expects operating margins to be in the region of 32% to 33%.