Cisco said total revenue decreased by 13% in Q3 of fiscal 2023 compared with Q3, with product revenue down 19% and service revenue up 6%. The Splunk acquisition, completed in March 2024, added $413 million to Q3 total revenue.

10-QQuarterly reportFiled May 21, 2024Period of report Apr 27, 2024Summary published (UTC) Oct 24, 2026

Key points

AI summary

Cisco said total revenue decreased by 13% in Q3 of fiscal 2023 compared with Q3, with product revenue down 19% and service revenue up 6%. The Splunk acquisition, completed in March 2024, added $413 million to Q3 total revenue.
Cisco said its operating income as a percentage of revenue fell by 9.9 percentage points in Q3, citing restructuring and other charges of $542 million and higher amortization of purchased intangible assets as the main factors. Diluted earnings per share decreased by 41%, and restructuring and other charges for the first 9 months totaled $677 million.
The company said Networking product revenue fell 27%, or $2.5 billion, in Q3, citing customers' continued inventory implementation. Security product revenue rose 36%, or $346 million, and grew 3% excluding Splunk.
Cisco cited the Splunk acquisition net outflow of $27.4 billion, dividends of $4.8 billion and share repurchases of $3.8 billion as the main drivers of the net decrease in cash and investments in the first 9 months of fiscal 2024. Net proceeds from senior notes of $13.4 billion and net cash provided by operating activities of $7.2 billion partially offset these outflows.

Key figures

Quarter ended April 27, 2024

Revenue: $12.7B
Operating income: $2.2B
Net income: $1.9B
EPS: $0.46
Gross profit: $8.3B

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Fiscal 2024 Q3 total revenue down 13%, Splunk adds $413 million

Cisco said total revenue decreased by 13% in Q3 of fiscal 2023 compared with Q3, with product revenue down 19% and service revenue up 6%. The Splunk acquisition, completed in March 2024, added $413 million to Q3 total revenue.

Source · Based on the MD&A text of the filing

Q3 operating margin down 9.9 percentage points on restructuring and other charges of $542 million

Cisco said its operating income as a percentage of revenue fell by 9.9 percentage points in Q3, citing restructuring and other charges of $542 million and higher amortization of purchased intangible assets as the main factors. Diluted earnings per share decreased by 41%, and restructuring and other charges for the first 9 months totaled $677 million.

Source · Based on the MD&A text of the filing

Q3 product revenue by category: Networking down 27%, Security up 36%

The company said Networking product revenue fell 27%, or $2.5 billion, in Q3, citing customers' continued inventory implementation. Security product revenue rose 36%, or $346 million, and grew 3% excluding Splunk.

Source · Based on the MD&A text of the filing

Drivers of 9-month net cash and investment decline and operating cash flow $7.2 billion

Cisco cited the Splunk acquisition net outflow of $27.4 billion, dividends of $4.8 billion and share repurchases of $3.8 billion as the main drivers of the net decrease in cash and investments in the first 9 months of fiscal 2024. Net proceeds from senior notes of $13.4 billion and net cash provided by operating activities of $7.2 billion partially offset these outflows.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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