The networking giant was seemingly harder hit by supply chain issues and other macro issues compared to competitors such as Arista Networks, Juniper Networks, and Extreme Networks. Here’s what to look for during Cisco’s Q4 fiscal quarter of 2022.
A Challenging Fiscal 2022
Nearly every industry is running up against tremendous supply chain challenges and shortages, but Cisco Systems was hard hit during its most recent fiscal Q3 2022 quarter due to some unexpected events — namely, Russia’s war on Ukraine and COVID-19-related closures in China, in addition to the global supply chain crisis. As such, the networking giant is forecasting revenue declines for its next and final quarter of the year, due to drop on Wednesday.
The San Jose, Calif.-based company disappointed investors in May after offering a weaker than expected guidance. For fiscal Q3 2022 which ended April 30, Cisco’s revenue stayed relatively flat at $12.83 billion compared to $12.80 in the year-ago quarter. At the same time, however, Cisco noted record-breaking customer demand and software and product order backlog.
“While the quarter clearly didn’t play out exactly as expected, demand remains solid and the fundamentals of our business remains strong,” said Cisco Chairman and CEO Chuck Robbins during the company’s most recent earnings call in May.
Investors say that Cisco has been facing more headwinds than its networking peers, including Arista Networks, Juniper Networks, and Extreme Networks as the company gets set to report its fiscal fourth quarter on Wednesday evening.
