Cisco enhances revenue growth for fiscal 2023

Cisco said it expects revenue growth of 9 percent to 10.5 percent for fiscal 2023. The networking giant had previously forecast revenue growth of 4.5 percent to 6.5 percent.
Cisco booth at MWC 2018Cisco’s confidence in enhancing revenue growth assumes significance because research firm Gartner’s forecast indicated that worldwide IT spending is projected to grow 2.4 percent to $4,491 billion in 2023. The global IT spending had dropped 0.2 percent in 2022 to $4,385 billion.

Cisco said it reduced backlog 6 percent sequentially, while remaining performance obligations (RPO), a metric that denotes contractual revenue that will be recognized in the future, was $31.8 billion as of January-end, compared to $30.9 billion in October.

Cisco’s strong performance comes at a time of cost-cutting and restructuring across the U.S. technology sector in response to economic headwinds. Cisco earlier announced a 5 percent workforce reduction in November.

Cisco reported revenue of $13.6 billion (+7 percent) and net income of $2.8 billion for second quarter ended January 28, 2023.

Cisco generated revenue of $6.746 billion (+14 percent) from Secure, Agile Networks, $1.306 billion (–1 percent) from Internet for the Future, $958 million (–10 percent) from Collaboration, $943 million (+7 percent) from End-to-End Security and $199 million (+11 percent) from Optimized Application Experiences.

Cisco generated revenue of $7.825 billion (+9 percent) from Americas, $3.728 billion, (+5 percent) from EMEA, and $2.039 billion (+1 percent) from Asia Pacific including India, Japan and China.

“With Cisco’s strong Q2 performance, our fiscal 2023 is shaping up to be a great year,” said Chuck Robbins, chair and CEO of Cisco. “The modern, highly secure networks we are building serve as the backbone of our customers’ technology strategy. This, combined with the success of our ongoing business transformation and operational discipline gives me confidence in our future.”

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