Cisco published their Q2 financial results which were announced on the 16th February 2022. with overall revenues up 6% to $12.7B and GAAP operating income up 8% to $3.5B.
We continue to see incredibly strong demand across our portfolio, emphasizing the criticality and relevance of Cisco’s innovation
Chuck Robbins | Cisco Chair and CEO
In the full report, which you can see here, Cisco said that they continued to see “robust demand, with momentum once again across all geographic regions and customer markets”.
They reported their 3rd quarter of consecutive growth and 33% order growth YoY in Q2.
TL;DR
- Internet for the Future increased 42%
- Secure, Agile Networks increased 7%
- End to End Security increased 7%
- Optimised Application Experiences increased 12%
- Hybrid Work (Collab) decreased 9%
Q2 Summary
Cisco reported their 3rd quarter of consecutive growth with >30% growth and 33% order growth year-over-year in Q2.
Overall Cisco’s product sales continued to grow in Q2 (up 9% overall to $9.35m).
- Secure Agile Networks (Enterprise Networking in the old world) grew 7% with most of the growth coming from data centre switching which experienced a double-digit growth in their Nexus 9000 product range in Q2.
- Campus switching also grew well, led by double digit growth in their Meraki Wireless networking.
- Collaboration Sales which includes WebEx, declined by 9% which continues to track a downward trend in their collaboration devices, meetings and voice services
- End to End Security sales grew 7% with growth reported across their portfolio with products making up their “Zero Trust” portfolio seeing “double digit” growth.
- Optimised Application Services which includes products like ThousandEyes grew 12%
- Internet of the Future (which includes routed optical networking and 5G services grew a whopping 42% the biggest growth across their product portfolio
Services Product Growth
- There isn’t much to report here other than Services Sales declined 1% in Q2.
Subscription Revenues
Cisco said that subscription revenues grew 7% year on year to $5.5B as they continue to transform themselves into more of a software business and remove the reliance on hardware only sales. Cisco said that Subscription reviews accounted for a total of 44% of their revenues in Q2 with annualised recurring revenue (ARR) up 11% to $21.9B
Supply Chain Issues Continue
Cisco said that supply chain issues will continue to impact Cisco in H2 (which ends in July 2022) and its expected to impact shipments and fulfilment throughout 2022.
Like most vendors at the moment and something my employer Cisilion is seeing as a continue challenge with our customers, Cisco have been badly affected by the supply chain issues stemming from the global shortage of semi-conductors.