Networking hardware giant Cisco Systems (NASDAQ: CSCO) is sensitive to prevailing economic conditions. When its enterprise customers are facing uncertainty, they tend to delay orders of pricey networking gear. This caution from customers can lead to significant declines in Cisco's top and bottom lines.

Given the current state of the economy, with elevated inflation and rising interest rates pressuring consumers and businesses, Cisco's strong earnings report on Wednesday came as a bit of a surprise. The company reported a 7% year-over-year rise in revenue and a 5% jump in non-GAAP earnings per share (EPS). Both metrics came in ahead of analyst expectations.

Cisco's guidance was even more impressive. The company now expects to grow revenue in fiscal 2023 by 9% to 10.5%, well above analyst expectations of roughly 5.7% growth. Non-GAAP EPS for the full year should now come in between $3.73 and $3.78, well above the $3.55 analyst consensus.

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Source Fool.com