Cisco’s Product Sales Surged. Why Were Services Almost Flat?

Cisco Systems, Inc. (NASDAQ:CSCO) delivered strong fiscal fourth-quarter growth, but the mix deserves attention. Product revenue reached $13.459 billion, up from $10.886 billion a year earlier. Services revenue was $3.793 billion, barely above $3.787 billion. The service business supported profitability without contributing much to the sales acceleration.

Those August 12 results cover the quarter ended July 25. The categories should not be confused with recurring versus nonrecurring revenue: Cisco also sells subscriptions within products. Even so, the difference helps investors locate the part of the income statement carrying the current growth rate.

CSCO ranks fifth on our list of 10 Best Cybersecurity Stocks to Buy According to Analysts. See which four stocks ranked ahead.

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Cisco placed fifth in our October 7 cybersecurity list.