Cisco's Q2 tops estimates despite revenue decline

Cisco’s second quarter financial results topped estimates but revealed lingering declines across business segments.

The tech giant reported a net income of $2.3 billion, or 47 cents per share.

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Non-GAAP earnings were 57 cents per share on a revenue of $11.6 billion, down two percent year over year.

Wall Street was looking for earnings of 56 cents per share with $11.55 billion in revenue. Cisco’s shares were down slightly after hours.

For the current quarter, Wall Street is looking for non-GAAP earnings of 58 cents per share with $11.86 billion in revenue. Cisco responded with a revenue outlook that ranges from a 2-percent decrease to flat, with EPS between 57 cents a share and 59 cents a share.

Breaking revenue down by segment, Cisco said Q2 product revenue was down 4 percent and service revenue up 5 percent. Switching decreased 5 percent, while collaboration and wireless product revenue increased by 4 percent and 3 percent, respectively. Datacenter revenue dropped 4 percent.

Nevertheless, Cisco CEO Chuck Robbins said he was “pleased with the quarter and the continued customer momentum.”

“We will remain focused on accelerating innovation across our portfolio as we continue to deliver value to customers and shareholders,” Robbins said.

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