Cisco, the worldwide leader in networking, has reported solid earnings for the second quarter (Q2) and raised the dividend paid to shareholders as well. Cisco's Q2 revenue increased by 68% to $24.2 billion, compared with $23.2 billion a year ago, driven by robust sales in the switching and routing hardware segment. The company said that the Q2 results reflect continued progress as Cisco transforms to become the #1 IT company in the world.
Despite lower spending from telecom carriers, Cisco registered a double-digit growth in Collaboration, Data Center and Wireless segments, apart from its Switching business as well as Security portfolio, resulting in its top-line increase.
Cisco chairman and CEO John Chambers
We delivered this strong performance despite a volatile economic environment. Our strong momentum is the direct result of how well we have managed our company transformation over the last three plus years and our leadership position in the key technology transitions of cloud, mobility, big data, security, collaboration, and the Internet of Everything. Every nation, every company, everything is becoming digitized and the network is at the center of this transformation.
Kelly Kramer, EVP and CFO
This was a good quarter to start as CFO. The momentum in the business feels good and we are excited about the opportunities ahead. Our revenue growth and increased EPS allows us to continue to give back to shareholders as we returned $2.2 billion to shareholders in Q2 and remain committed to returning at least 50% of our free cash flow annually. We are also pleased to increase our dividend to $0.21 this quarter, an 11% increase.