During the Covid-19 lockdown, the “what am I gonna wear?” dilemma was substituted with the “Zoom or Cisco” dilemma (did anyone else feel this way?). The truth is that Cisco (CSCO) is much more than a cloud meeting software, and the company’s fourth fiscal quarter numbers are here to prove it. Cisco’s revenue increased by 8% to $13.1b, while net income rose by 14% to $3b.
These results did not only originate from service revenues ($3.4b), but also from a 31% product sales growth — the strongest year-on-year growth in over a decade. Cisco’s CEO Chuck Robbins highlighted how customers are increasingly looking to modernize their organizations for agility and resilience. Cisco’s shares jumped 3.45% following the news, hitting their highest level since the dot-com era.
Why it matters
Cisco’s results are a testament to the growing demand for internet protocol-based networking products and services as companies attempt to accelerate their digital transformation in an increasingly hybrid world.
