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Cisco Systems Inc - Stock Quote CSCO

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Morningstar's Cisco Systems Inc Stock Analysis

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Cisco Remains Focused on Recurring Revenue via Software and Services; $54 FVE

Mark Cash Senior Equity Analyst

Business Strategy and Outlook

| Brian Colello, CPA |

The networking equipment behemoth Cisco continues to execute on its strategic focus of increasing recurring revenue via selling software and services to supplement its hardware products. Software and services were more than half of fiscal 2021 revenue, up from 43% in fiscal 2017. In our view, Cisco embracing software from hardware disaggregation, and even selling networking chips, can help keep demand for its solutions high although some customers rely on cloud-based resources or generic hardware. We assess narrow-moat Cisco's plan as the correct direction for maintainable growth and believe the firm's strategic shifts through organic developments and acquisitions, keep Cisco as mainstay in today's networks.

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Cisco Systems Inc's Company Profile

Business Description

Cisco Systems, Inc. is the world's largest hardware and software supplier within the networking solutions sector. The secure, agile networks business contains switching, routing, and wireless solutions. The hybrid work division has products for collaboration and contact center needs. The end-to-end security group has products spanning a variety of threat prevention necessities. The internet for the future division has routed optical networks, silicon, and optics. Optimized application experiences offer solutions such as full stack observability. Services are Cisco's technical support and advanced services offerings. In collaboration with Cisco's initiative on growing software and services, its revenue model is focused on increasing subscriptions and recurring sales.

170 West Tasman Drive
San Jose, CA, 95134-1706
T +1 408 526-4000
Industry Communication Equipment
Most Recent Earnings Apr 30, 2022
Fiscal Year End Jul 31, 2022
Stock Type Cyclical
Employees 79,500

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