Network equipment giant Cisco swept past Q2 targets and reported $11.2bn in revenues and a profit of $3.1bn, which CEO Chuck Robbins attributed to the company’s investment in innovation.
The strong results boosted Cisco shares by 7pc to $24.05 in after-hours trading.
The sentiment was boosted by news that Cisco plans to buy back around $15bn worth of shares. This is a surprise development considering Cisco’s board had previously authorised up to $97bn in stock repurchases.
‘We’re managing the company on two fronts. We’re focused on continued strong execution in the near term while investing in the innovation to lead our customers into the future’
– CHUCK ROBBINS, CISCO
Earnings-per-share came in at 62 cents, ahead of the analyst consensus of 54 cents.
“We delivered a strong Q2, and are managing the business extremely well in a challenging macro environment,” said Robbins.
“We’re managing the company on two fronts. We’re focused on continued strong execution in the near term while investing in the innovation to lead our customers into the future.”
As well as innovating, Cisco has been on an acquisition spree, buying up Portcullis, ParStream, Lancope and 1 Mainstream in the security, data analytics and video markets.
In recent weeks, Cisco acquired Jasper Technologies, an internet of things player, for $1.4bn.