By Yasin Ebrahim
Investing.com - Cisco (NASDAQ:CSCO) raised its full-year guidance Wednesday after reporting better-than-expected second quarter results, and unveiling a $15 billion boost to its share buyback.
Cisco shares gained 5% in after-hours trade following the report.
Cisco announced earnings per share of cents 84 on revenue of $12.72 billion. Analysts polled by Investing.com anticipated EPS of 81 cents on revenue of $12.66 billion.
Product revenue, which accounts for lion share of total revenue, rose 9% to $9.35 billion, offsetting a 1% fall services revenue.
"We delivered healthy margins while continuing to make good progress in our business model shift, with software product revenue growing 9% year over year and the product portions of ARR and RPO growing in double digits," the company said.
The company approved a $15 billion increase to share buybacks, taking the total remaining authorized amount for stock repurchases to approximately $18 billion.
Looking to Q3, the company guided EPS in a range of 85 cents to 87 cents, in-line with Wall Street estimates of 87 cents. Revenue growth was guided within a range of 3% to 5%.
For the full year, EPS is expected in the range of $3.41 to $3.46, with revenue forecast to grow 5.5% to 6.5%. The company previously expected EPS in the range of $3.38 to $3.45.
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