Cisco today reported 2018 Q3 results for the period ended April 28, 2018. Cisco reported revenue of $12.5 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.7 billion or $0.56 per share, and non-GAAP net income of $3.2 billion or $0.66 per share.
“We are executing well against our strategy, our innovation pipeline has never been stronger, and we continue to make great progress in transforming towards more software and subscriptions,” said Chuck Robbins, Chairman and CEO, Cisco. “I am confident with our position in the industry and the impact we will continue to drive with our customers.”
Cisco has been trying to strengthen sales of recurring or subscription revenues, to de-emphasize hardware sales, which are under pressure from competitors such as China’s Huawei. Thus, somewhat disappointing was Cisco’s services revenue. They reported a 3% rise to $3.16 billion, while analysts’ were expecting a 5.5% rise to $3.22 billion from a year ago.
For the upcoming quarter, Cisco estimates adjusted earnings of 68 cents to 70 cents a share on revenue of $12.62 billion to $12.86 billion. Analysts were forecasting earnings of 69 cents a share on revenue of $12.72 billion.
Investors, who had hoped that Cisco’s estimates had been too conservative, were disappointed with the results. In after hours trading, shares sank three and a half percent.
To see the quarterly results, go to https://newsroom.cisco.com/press-release-content?type=webcontent&articleId=1926646