The tech company reported earnings of US$0.70 per share on revenue of US$12.8bn compared with US$0.61 EPS on revenue of US$12.1bn in the previous year’s fourth quarter.
The California-based company beat Wall Street estimates of US$0.68 EPS on revenue of $12.77bn.
For the first quarter, the company expects earnings of US$0.70 to US$0.72 per share on revenue of US$12.74bn to US$12.99bn.
The forecast is above consensus estimates of US$0.69 per share on revenue of $12.59bn.
READ: Cisco Systems' acquisition of Duo Security edges shares higher as company expands into software
Shares of Cisco were up nearly 6.63% to US$46.77 in premarket trade.
“Our results demonstrate a combination of strong customer adoption of our latest innovations, the ongoing value customers see in our software and subscription offerings, and excellent execution across our customer segments and geographies. Our strategy is working and we believe that are well-positioned to capture growth across our portfolio with our pipeline of innovation,” said CEO Chuck Robbins in the company’s press release.
Cisco develops networking and communications products, but also offers software and services.
Revenue in its application software businesses jumped 10% to US$1.34bn. Revenue in its infrastructure platform division was up by 7% to US$7.44bn, well above analyst consensus of US$7.32bn.
The tech giant’s security business totaled US$627mln, topping estimates of US$615.8mln in revenue.
The company recently acquired Duo Security, a cloud-based security system, in a US$2.35bn deal in an effort to boost its software and services sector.
Analysts at Oppenheimer wrote that Cisco continued "to successfully pivot to a recurring/software-driven business model," and hailed their aggressive buyback plan and solid 3% dividend yield.
"We see further upside ahead. Raising estimates for guidance/results; our PT remains at $50. Maintain Outperform," wrote Oppenehimer analysts George Iwanyc, Vinod Srinivasaraghavan and Ittai Kidron.
The analysts also said they saw Cisco as well positioned for the next-generation virtualized data center (VDC) given its history of "strong execution and product breadth," geographic diversity and scale advantages.
-- Updates with Oppenheimer analyst commentary, stock quote --