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CISCO REPORTS SECOND QUARTER EARNINGS

Published

3 years ago

on

SAN JOSE, Calif., Feb. 14, 2024 /PRNewswire/ — 

News Summary:

$12.8 billion in revenue, down 6% year over year; GAAP EPS $0.65, down 3% year over year, and Non-GAAP EPS $0.87, down 1% year over year

Revenue growth in security, collaboration and observabilityProgress on business model transformation in Q2 FY 2024:Total software revenue was flat year over year and software subscription revenue up 5% year over yearTotal annualized recurring revenue (ARR) at $24.7 billion, up 6% year over year and product ARR up 9% year over yearRemaining performance obligations (RPO) at $35.7 billion, up 12% year over year and product RPO up 12% year over yearDividend increased by 3% to $0.40 per shareQ2 FY 2024 Results:Revenue: $12.8 billionDecrease of 6% year over yearEarnings per Share: GAAP: $0.65; Non-GAAP: $0.87GAAP EPS decreased 3% year over yearNon-GAAP EPS decreased 1% year over yearQ3 FY 2024 Guidance:   Revenue: $12.1 billion to $12.3 billionEarnings per Share: GAAP: $0.51 to $0.56; Non-GAAP: $0.84 to $0.86FY 2024 Guidance:Revenue: $51.5 billion to $52.5 billionEarnings per Share: GAAP: $2.61 to $2.73; Non-GAAP: $3.68 to $3.74

Cisco today reported second quarter results for the period ended January 27, 2024. Cisco reported second quarter revenue of $12.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.6 billion or $0.65 per share, and non-GAAP net income of $3.5 billion or $0.87 per share.

“We delivered a solid second quarter with strong operating leverage and capital returns,” said Chuck Robbins, chair and CEO of Cisco. “We continue to align our investments to future growth opportunities. Our innovation sits at the center of an increasingly connected ecosystem and will play a critical role as our customers adopt AI and secure their organizations.”

“Focused execution and operating discipline drove our solid top and bottom-line results and strong margins in Q2,” said Scott Herren, CFO of Cisco. “We are making good progress in our business model shift to more recurring revenue while remaining focused on financial discipline, operating leverage and shareholder returns, as evidenced by our increased dividend.”

GAAP Results

Q2 FY 2024

Q2 FY 2023

Vs. Q2 FY 2023

Revenue

$    12.8 billion

$      13.6 billion

(6) %

Net Income

$     2.6  billion

$       2.8  billion

(5) %

Diluted Earnings per Share (EPS)

$           0.65

$             0.67

(3) %

 

Non-GAAP Results

Q2 FY 2024

Q2 FY 2023

Vs. Q2 FY 2023

Net Income

$      3.5 billion

$      3.6 billion

(3) %

EPS

$           0.87

$            0.88

(1) %

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Cisco Increases Quarterly Dividend

Cisco has declared a quarterly dividend of $0.40 per common share, a 1-cent increase or up 3%, over the previous quarter’s dividend, to be paid on April 24, 2024, to all stockholders of record as of the close of business on April 4, 2024. Future dividends will be subject to Board approval.

Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q2 FY 2024 Highlights

Revenue — Total revenue was $12.8 billion, down 6%, with product revenue down 9% and service revenue up 4%. Revenue by geographic segment was: Americas down 4%, EMEA down 7%, and APJC was down 12%. Product revenue performance reflected growth in Security up 3%, Collaboration up 3% and Observability up 16%. Networking was down 12%.

Gross Margin — On a GAAP basis, total gross margin, product gross margin, and service gross margin were 64.2%, 62.7%, and 68.2%, respectively, as compared with 62.0%, 60.2%, and 67.2%, respectively, in the second quarter of fiscal 2023.

On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 66.7%, 65.2%, and 70.5%, respectively, as compared with 63.9%, 62.1%, and 69.1%, respectively, in the second quarter of fiscal 2023.

Total gross margins by geographic segment were: 65.7% for the Americas, 68.1% for EMEA and 68.2% for APJC.

Operating Expenses — On a GAAP basis, operating expenses was flat at $5.1 billion, and were 40.0% of revenue. Non-GAAP operating expenses were $4.3 billion, up 1%, and were 33.8% of revenue.

Operating Income — GAAP operating income was $3.1 billion, down 6%, with GAAP operating margin of 24.2%. Non-GAAP operating income was $4.2 billion, down 4%, with non-GAAP operating margin at 33.0%.

Provision for Income Taxes — The GAAP tax provision rate was 16.7%. The non-GAAP tax provision rate was 19.0%.

Net Income and EPS — On a GAAP basis, net income was $2.6 billion, a decrease of 5%, and EPS was $0.65, a decrease of 3%. On a non-GAAP basis, net income was $3.5 billion, a decrease of 3%, and EPS was $0.87, a decrease of 1%.

Cash Flow from Operating Activities — $0.8 billion for the second quarter of fiscal 2024, a decrease of 83% compared with $4.7 billion for the second quarter of fiscal 2023.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments — $25.7 billion at the end of the second quarter of fiscal 2024, compared with $26.1 billion at the end of fiscal 2023.

Remaining Performance Obligations (RPO) — $35.7 billion, up 12% in total, with 50% of this amount to be recognized as revenue over the next 12 months. Product RPO and service RPO were each up 12%.

Deferred Revenue — $25.8 billion, up 8% in total, with deferred product revenue up 9%. Deferred service revenue was up 7%.

Capital Allocation — In the second quarter of fiscal 2024, we returned $2.8 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.39 per common share, or $1.6 billion, and repurchased approximately 25 million shares of common stock under our stock repurchase program at an average price of $49.54 per share for an aggregate purchase price of $1.3 billion. The remaining authorized amount for stock repurchases under the program is $8.4 billion with no termination date.

Guidance

Cisco expects to achieve the following results for the third quarter of fiscal 2024:

Q3 FY 2024

Revenue

$12.1 billion – $12.3 billion

Non-GAAP gross margin rate

66% – 67%

Non-GAAP operating margin rate

33.5% – 34.5%

Non-GAAP EPS

$0.84 – $0.86

Cisco estimates that GAAP EPS will be $0.51 to $0.56 for the third quarter of fiscal 2024.

Cisco expects to achieve the following results for fiscal 2024:

FY 2024

Revenue

$51.5 billion – $52.5 billion

Non-GAAP EPS

$3.68 – $3.74

Cisco estimates that GAAP EPS will be $2.61 to $2.73 for fiscal 2024.

Our Q3 FY 2024 and FY 2024 guidance assumes an effective tax provision rate of 18% for GAAP and 19% for non-GAAP results.

A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

Editor’s Notes:

Q2 fiscal year 2024 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, February 14, 2024 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).Conference call replay will be available from 4:00 p.m. Pacific Time, February 14, 2024 to 12:00 a.m. Pacific Time, February 21, 2024 at 1-800-876-5258 (United States) or 1-203-369-3998 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, February 14, 2024. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

 

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited) 

Three Months Ended

Six Months Ended

January 27, 2024

January 28, 2023

January 27, 2024

January 28, 2023

REVENUE:

Product

$         9,232

$       10,155

$       20,371

$       20,400

Service

3,559

3,437

7,088

6,824

Total revenue

12,791

13,592

27,459

27,224

COST OF SALES:

Product

3,443

4,038

7,400

8,217

Service

1,131

1,127

2,285

2,234

Total cost of sales

4,574

5,165

9,685

10,451

GROSS MARGIN

8,217

8,427

17,774

16,773

OPERATING EXPENSES:

Research and development

1,943

1,855

3,856

3,636

Sales and marketing

2,458

2,384

4,964

4,775

General and administrative

642

582

1,314

1,147

Amortization of purchased intangible assets

66

71

133

142

Restructuring and other charges

12

243

135

241

Total operating expenses

5,121

5,135

10,402

9,941

OPERATING INCOME

3,096

3,292

7,372

6,832

Interest income

324

219

684

388

Interest expense

(120)

(107)

(231)

(207)

Other income (loss), net

(139)

11

(222)

(123)

Interest and other income (loss), net

65

123

231

58

INCOME BEFORE PROVISION FOR INCOME TAXES

3,161

3,415

7,603

6,890

Provision for income taxes

527

642

1,331

1,447

NET INCOME

$         2,634

$         2,773

$         6,272

$         5,443

Net income per share:

Basic

$           0.65

$           0.68

$           1.55

$           1.33

Diluted

$           0.65

$           0.67

$           1.54

$           1.32

Shares used in per-share calculation:

Basic

4,055

4,103

4,056

4,105

Diluted

4,073

4,116

4,079

4,115

 

CISCO SYSTEMS, INC.

REVENUE BY SEGMENT

(In millions, except percentages)

January 27, 2024

Three Months Ended

Six Months Ended

Amount

Y/Y %

Amount

Y/Y %

Revenue:

Americas

$         7,510

(4) %

$       16,532

5 %

EMEA

3,484

(7) %

7,148

(3) %

APJC

1,798

(12) %

3,779

(7) %

Total

$       12,791

(6) %

$       27,459

1 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

GROSS MARGIN PERCENTAGE BY SEGMENT

(In percentages)

January 27, 2024

Three Months Ended

Six Months Ended

Gross Margin Percentage:

Americas

65.7 %

65.9 %

EMEA

68.1 %

68.8 %

APJC

68.2 %

67.6 %

 

CISCO SYSTEMS, INC.

REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

(In millions, except percentages)

January 27, 2024

Three Months Ended

Six Months Ended

Amount

Y/Y %

Amount

Y/Y %

Revenue:

Networking

$         7,081

(12) %

$       15,904

(1) %

Security

973

3 %

1,984

4 %

Collaboration

989

3 %

2,106

3 %

Observability

188

16 %

378

18 %

Total Product

9,232

(9) %

20,371

— %

Services

3,559

4 %

7,088

4 %

Total

$       12,791

(6) %

$       27,459

1 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

January 27, 2024

July 29, 2023

ASSETS

Current assets:

Cash and cash equivalents

$              13,715

$              10,123

Investments

11,956

16,023

Accounts receivable, net of allowance of $79 at January 27, 2024 and $85 at July 29, 2023

4,884

5,854

Inventories

3,209

3,644

Financing receivables, net

3,476

3,352

Other current assets

4,887

4,352

Total current assets

42,127

43,348

Property and equipment, net

2,005

2,085

Financing receivables, net

3,364

3,483

Goodwill

39,087

38,535

Purchased intangible assets, net

1,678

1,818

Deferred tax assets

7,338

6,576

Other assets

5,575

6,007

TOTAL ASSETS

$            101,174

$            101,852

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt

$                4,936

$                1,733

Accounts payable

1,848

2,313

Income taxes payable

1,876

4,235

Accrued compensation

3,216

3,984

Deferred revenue

14,011

13,908

Other current liabilities

4,964

5,136

Total current liabilities

30,851

31,309

Long-term debt

6,669

6,658

Income taxes payable

3,390

5,756

Deferred revenue

11,760

11,642

Other long-term liabilities

2,253

2,134

Total liabilities

54,923

57,499

Total equity

46,251

44,353

TOTAL LIABILITIES AND EQUITY

$            101,174

$            101,852

 

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Six Months Ended

January 27,
2024

January 28,
2023

Cash flows from operating activities:

Net income

$              6,272

$              5,443

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization, and other

823

853

Share-based compensation expense

1,463

1,097

Provision (benefit) for receivables

12

6

Deferred income taxes

(816)

(845)

(Gains) losses on divestitures, investments and other, net

205

109

Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

Accounts receivable

941

1,393

Inventories

442

(569)

Financing receivables

(33)

834

Other assets

(403)

(210)

Accounts payable

(476)

42

Income taxes, net

(4,656)

118

Accrued compensation

(763)

(146)

Deferred revenue

293

633

Other liabilities

(125)

(57)

Net cash provided by operating activities

3,179

8,701

Cash flows from investing activities:

Purchases of investments

(2,253)

(3,797)

Proceeds from sales of investments

2,484

587

Proceeds from maturities of investments

4,044

2,316

Acquisitions, net of cash and cash equivalents acquired

(878)

(3)

Purchases of investments in privately held companies

(50)

(70)

Return of investments in privately held companies

123

39

Acquisition of property and equipment

(304)

(346)

Other

(1)

(19)

Net cash provided by (used in) provided by investing activities

3,165

(1,293)

Cash flows from financing activities:

Issuances of common stock

349

316

Repurchases of common stock – repurchase program

(2,504)

(1,760)

Shares repurchased for tax withholdings on vesting of restricted stock units

(581)

(310)

Short-term borrowings, original maturities of 90 days or less, net

1,398

(602)

Issuances of debt

2,537

—

Repayments of debt

(750)

—

Dividends paid

(3,163)

(3,120)

Other

(7)

(5)

Net cash used in financing activities

(2,721)

(5,481)

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

(32)

3

Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents

3,591

1,930

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

11,627

8,579

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

$           15,218

$           10,509

Supplemental cash flow information:

Cash paid for interest

$                 203

$                 178

Cash paid for income taxes, net

$              6,804

$              2,172

 

CISCO SYSTEMS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(In millions, except percentages)

January 27, 2024

October 28, 2023

January 28, 2023

Amount

Y/Y%

Amount

Y/Y%

Amount

Y/Y%

Product

$    16,249

12 %

$    16,011

14 %

$    14,517

7 %

Service

19,407

12 %

18,742

11 %

17,255

2 %

Total

$    35,656

12 %

$    34,753

12 %

$    31,772

4 %

We expect 50% of total RPO at January 27, 2024 will be recognized as revenue over the next 12 months.

 

CISCO SYSTEMS, INC.

DEFERRED REVENUE

(In millions)

January 27, 2024

October 28, 2023

January 28, 2023

Deferred revenue:

Product

$       11,640

$       11,689

$       10,679

Service

14,131

13,970

13,248

Total

$       25,771

$       25,659

$       23,927

Reported as:

Current

$       14,011

$       13,812

$       13,109

Noncurrent

11,760

11,847

10,818

Total

$       25,771

$       25,659

$       23,927

 

CISCO SYSTEMS, INC.

DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

(In millions, except per-share amounts)

DIVIDENDS

STOCK REPURCHASE PROGRAM

TOTAL

Quarter Ended

Per Share

Amount

Shares

Weighted-
Average Price
per Share

Amount

Amount

Fiscal 2024

January 27, 2024

$             0.39

$          1,583

25

$          49.54

$          1,254

$          2,837

October 28, 2023

$             0.39

$          1,580

23

$          54.53

$          1,252

$          2,832

Fiscal 2023

July 29, 2023

$             0.39

$          1,589

25

$          50.49

$          1,254

$          2,843

April 29, 2023

$             0.39

$          1,593

25

$          49.45

$          1,259

$          2,852

January 28, 2023

$             0.38

$          1,560

26

$          47.72

$          1,256

$          2,816

October 29, 2022

$             0.38

$          1,560

12

$          43.76

$             502

$          2,062

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP NET INCOME

(In millions)

Three Months Ended

Six Months Ended

January 27,
2024

January 28,
2023

January 27,
2024

January 28,
2023

GAAP net income

$         2,634

$         2,773

$         6,272

$         5,443

Adjustments to cost of sales:

Share-based compensation expense

139

106

242

187

Amortization of acquisition-related intangible assets

175

153

356

306

Acquisition-related/divestiture costs

1

1

1

3

Total adjustments to GAAP cost of sales

315

260

599

496

Adjustments to operating expenses:

Share-based compensation expense

662

498

1,212

913

Amortization of acquisition-related intangible assets

66

71

133

142

Acquisition-related/divestiture costs

64

48

139

123

Russia-Ukraine war costs

—

2

(2)

5

Significant asset impairments and restructurings

12

243

135

241

Total adjustments to GAAP operating expenses

804

862

1,617

1,424

Adjustments to interest and other income (loss), net:

(Gains) and losses on investments

88

(44)

139

65

Total adjustments to GAAP interest and other income (loss), net

88

(44)

139

65

Total adjustments to GAAP income before provision for income taxes

1,207

1,078

2,355

1,985

Income tax effect of non-GAAP adjustments

(303)

(212)

(561)

(404)

Significant tax matters

—

—

—

164

Total adjustments to GAAP provision for income taxes

(303)

(212)

(561)

(240)

Non-GAAP net income

$         3,538

$         3,639

$         8,066

$         7,188

  

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP EPS

Three Months Ended

Six Months Ended

January 27,
2024

January 28,
2023

January 27,
2024

January 28,
2023

GAAP EPS

$           0.65

$           0.67

$           1.54

$           1.32

Adjustments to GAAP:

Share-based compensation expense

0.20

0.15

0.36

0.27

Amortization of acquisition-related intangible assets

0.06

0.05

0.12

0.11

Acquisition-related/divestiture costs

0.02

0.01

0.03

0.03

Significant asset impairments and restructurings

—

0.06

0.03

0.06

(Gains) and losses on investments

0.02

(0.01)

0.03

0.02

Income tax effect of non-GAAP adjustments

(0.07)

(0.05)

(0.14)

(0.10)

Significant tax matters

—

—

—

0.04

Non-GAAP EPS

$           0.87

$           0.88

$           1.98

$           1.75

Amounts may not sum due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,
AND NET INCOME

(In millions, except percentages)

Three Months Ended

January 27, 2024

Product
Gross
Margin

Service
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Y/Y

Operating
Income

Y/Y

Interest
andother
income
(loss), net

Net
Income

Y/Y

GAAP amount

$ 5,789

$ 2,428

$ 8,217

$ 5,121

— %

$ 3,096

(6) %

$    65

$ 2,634

(5) %

% of revenue

62.7 %

68.2 %

64.2 %

40.0 %

24.2 %

0.5 %

20.6 %

Adjustments to GAAP amounts:

Share-based compensation expense

58

81

139

662

801

—

801

Amortization of acquisition-related intangible assets

175

—

175

66

241

—

241

Acquisition/divestiture-related costs

1

—

1

64

65

—

65

Significant asset impairments and restructurings

—

—

—

12

12

—

12

(Gains) and losses on investments

—

—

—

—

—

88

88

Income tax effect/significant tax matters

—

—

—

—

—

—

(303)

Non-GAAP amount

$ 6,023

$ 2,509

$ 8,532

$ 4,317

1 %

$ 4,215

(4) %

$  153

$ 3,538

(3) %

% of revenue

65.2 %

70.5 %

66.7 %

33.8 %

33.0 %

1.2 %

27.7 %

               

Three Months Ended

January 28, 2023

Product
Gross
Margin

Service
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Operating

Income

Interest
and other
income
(loss), net

Net

Income

GAAP amount

$   6,117

$   2,310

$   8,427

$   5,135

$   3,292

$      123

$   2,773

% of revenue

60.2 %

67.2 %

62.0 %

37.8 %

24.2 %

0.9 %

20.4 %

Adjustments to GAAP amounts:

Share-based compensation expense

40

66

106

498

604

—

604

Amortization of acquisition-related intangible assets

153

—

153

71

224

—

224

Acquisition/divestiture-related costs

1

—

1

48

49

—

49

Significant asset impairments and restructurings

—

—

—

243

243

—

243

Russia-Ukraine war costs

—

—

—

2

2

—

2

(Gains) and losses on investments

—

—

—

—

—

(44)

(44)

Income tax effect/significant tax matters

—

—

—

—

—

—

(212)

Non-GAAP amount

$   6,311

$   2,376

$   8,687

$   4,273

$   4,414

$        79

$   3,639

% of revenue

62.1 %

69.1 %

63.9 %

31.4 %

32.5 %

0.6 %

26.8 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,
AND NET INCOME

(In millions, except percentages)

Six Months Ended

January 27, 2024

Product
Gross
Margin

Service
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Y/Y

Operating
Income

Y/Y

Interest
and other
income
(loss), net

Net Income

Y/Y

GAAP amount

$ 12,971

$ 4,803

$ 17,774

$ 10,402

5 %

$ 7,372

8 %

$  231

$ 6,272

15 %

% of revenue

63.7 %

67.8 %

64.7 %

37.9 %

26.8 %

0.8 %

22.8 %

Adjustments to GAAP amounts:

Share-based compensation expense

100

142

242

1,212

1,454

—

1,454

Amortization of acquisition-related intangible assets

356

—

356

133

489

—

489

Acquisition/divestiture-related costs

1

—

1

139

140

—

140

Significant asset impairments and restructurings

—

—

—

135

135

—

135

Russia-Ukraine war costs

—

—

—

(2)

(2)

—

(2)

(Gains) and losses on investments

—

—

—

—

—

139

139

Income tax effect/significant tax matters

—

—

—

—

—

—

(561)

Non-GAAP amount

$ 13,428

$ 4,945

$ 18,373

$ 8,785

3 %

$ 9,588

10 %

$  370

$ 8,066

12 %

% of revenue

65.9 %

69.8 %

66.9 %

32.0 %

34.9 %

1.3 %

29.4 %

 

Six Months Ended

January 28, 2023

Product
Gross
Margin

Service
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Operating

Income

Interest
and other
income
(loss), net

Net

Income

GAAP amount

$ 12,183

$   4,590

$ 16,773

$   9,941

$   6,832

$        58

$   5,443

% of revenue

59.7 %

67.3 %

61.6 %

36.5 %

25.1 %

0.2 %

20.0 %

Adjustments to GAAP amounts:

Share-based compensation expense

71

116

187

913

1,100

—

1,100

Amortization of acquisition-related intangible assets

306

—

306

142

448

—

448

Acquisition/divestiture-related costs

3

—

3

123

126

—

126

Significant asset impairments and restructurings

—

—

—

241

241

—

241

Russia-Ukraine war costs

—

—

—

5

5

—

5

(Gains) and losses on investments

—

—

—

—

—

65

65

Income tax effect/significant tax matters

—

—

—

—

—

—

(240)

Non-GAAP amount

$ 12,563

$   4,706

$ 17,269

$   8,517

$   8,752

$      123

$   7,188

% of revenue

61.6 %

69.0 %

63.4 %

31.3 %

32.1 %

0.5 %

26.4 %

Amounts may not sum and percentages may not recalculate due to rounding.

 

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

EFFECTIVE TAX RATE

(In percentages)

Three Months Ended

Six Months Ended

January 27,
2024

January 28,
2023

January 27,
2024

January 28,
2023

GAAP effective tax rate

16.7 %

18.8 %

17.5 %

21.0 %

Total adjustments to GAAP provision for income taxes

2.3 %

0.2 %

1.5 %

(2.0) %

Non-GAAP effective tax rate

19.0 %

19.0 %

19.0 %

19.0 %

 

GAAP TO NON-GAAP GUIDANCE

Q3 FY 2024

Gross Margin
Rate

Operating Margin
Rate

Earnings per
Share (2)

GAAP

63.5% – 64.5%

20.5% – 21.5%

$0.51 – $0.56

Estimated adjustments for:

Share-based compensation expense

1.0 %

6.5 %

$0.15 – $0.16

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

1.5 %

2.0 %

$0.05 – $0.06

Significant asset impairments and restructurings (1)

—

4.5 %

$0.10 – $0.11

Non-GAAP

66% – 67%

33.5% – 34.5%

$0.84 – $0.86

 

FY 2024

Earnings per
Share (2)

GAAP

$2.61 – $2.73

Estimated adjustments for:

Share-based compensation expense

$0.59 – $0.61

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

$0.23 – $0.25

Significant asset impairments and restructurings (1)

$0.16 – $0.18

(Gains) and losses on investments

$0.03

Non-GAAP

$3.68 – $3.74

(1) On February 14, 2024, Cisco announced a restructuring plan in order to realign the organization and enable further investment in key priority areas. This restructuring plan will impact approximately 5 percent of Cisco’s global workforce. Cisco currently estimates that it will recognize pre-tax charges to its GAAP financial results of approximately $800 million consisting of severance and other one-time termination benefits and other costs. These charges are primarily cash-based. Cisco expects to take the majority of these actions in the third quarter of fiscal 2024 and recognize approximately $500 million of these charges. Cisco expects approximately $150 million of these charges to be recognized in the fourth quarter of fiscal 2024, and the remaining amount of these charges primarily through the first half of fiscal 2025.

(2) Estimated adjustments to GAAP earnings per share are shown after income tax effects.

Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, asset impairments, Russia–Ukraine war costs, restructurings, (gains) and losses on investments and significant tax matters or other events, which may or may not be significant unless specifically stated.

Forward Looking Statements, Non-GAAP Information and Additional Information
This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as the alignment of our investments to future growth opportunities, the role that our innovation plays as our customers adopt AI and secure their organizations, the progress in our business model shift to more recurring revenue while remaining focused on financial discipline, operating leverage and shareholder returns) and the future financial performance of Cisco (including the guidance for Q3 FY 2024 and full year FY 2024) that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain priorities, key growth areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Forms 10-Q and 10-K filed on November 21, 2023 and September 7, 2023, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three and six months ended January 27, 2024 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia–Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

Annualized recurring revenue represents the annualized revenue run-rate of active subscriptions, term licenses, operating leases and maintenance contracts at the end of a reporting period, net of rebates to customers and partners as well as certain other revenue adjustments. Includes both revenue recognized ratably as well as upfront on an annualized basis.

About Cisco

Cisco (Nasdaq: CSCO) is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Discover more at newsroom.cisco.com and follow us on X at @Cisco.

Copyright © 2024 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds

 

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Anrok launches MCP server, putting your tax data inside the AI tools your team already uses

Published

44 seconds ago

on

October 21, 2026

By

Ask in plain language, get an answer that spans your billing system and Anrok, and act on it without opening a dashboard.

SAN FRANCISCO, Oct. 21, 2026 /PRNewswire/ — Anrok, the AI-native tax infrastructure for global commerce, today launched the Anrok MCP. It is a direct connection between your Anrok account and the AI assistants your team already works in, including Claude, ChatGPT, Cursor, and VS Code. Your team can read transactions, filings, exposure, customers, exemption certificates, and products, then act on what it finds without leaving the conversation.

Finance teams adopted AI assistants faster than their finance systems. A controller can ask an assistant to draft a memo or model a scenario. But to answer, “did we collect the right tax in July?” they close the assistant, open a dashboard, run an export, and build a spreadsheet. Anrok believes your tax data shouldn’t stay behind a login.

Anrok MCP puts tax data in the same thread as everything else your assistant can reach, including your billing system, your inbox, and your spreadsheets.

“Finance teams are increasingly doing their work directly with AI agents and their tax data should be in there with them,” said Brad Silicani, CEO at Anrok. “Ask it to reconcile your billing system and Anrok, and you get the reconciliation in minutes for your close. The AI does the thinking, and Anrok MCP exposes the tools. It’s the same platform either way, and it’s accurate underneath.”

What your team can do

Anrok MCP includes 30+ tools across transactions, filings, exposure, customers, exemption certificates, and products. Your team can:

Reconcile Anrok against your billing system and find the gap before you remit.Pull a revenue or transaction answer without building a report.Review a filing before Anrok submits it and avoid the amended return.Debug a single transaction without opening a support ticket.Get a recommended tax category for a new SKU, then map it so it never falls through again.Catch exemption certificates before they lapse.

The MCP also writes. It can create a product, create a customer, create or update a transaction, and upload a certificate. Every write shows what moved, so you can check it.

One platform behind one connection

Anrok MCP is part of Headless Tax, the way into Anrok’s platform through the Anrok APIs and MCP. Behind it, one platform runs all five tax jobs: monitor and manage, register, calculate, file and remit, and reconcile and audit. That includes reconciliation, which no other tax platform has built in. One source of truth means one connection reaches your transactions, filings, exposure, customers, and certificates. The same intelligence powers Anrok across the dashboard, the API, and your agents.

“Anrok’s MCP cut our monthly Stripe-to-Anrok reconciliation from 4 hours to 30 minutes.” —Christie Perez, Indirect Tax Manager at Webflow

Availability

Anrok MCP is available now to Anrok customers. Connect from your AI tool’s connector settings, approve the scopes, and start asking. Documentation is at https://apidocs.anrok.com/mcp/.

About Anrok

Anrok is the AI-native tax infrastructure for global commerce. More than 5,500 users run sales tax and VAT/GST compliance on Anrok across 150+ countries, with more than $100B in processed volume. One platform runs all five compliance jobs, monitoring, registration, calculation, filing and remittance, and reconciliation, which no other tax platform has built in. Teams reach it however they work, in the product with Anrok Atlas, through the Anrok APIs, or by handing the job to an agent. The result is every tax dollar owed, collected, so tax becomes a pass-through instead of an expense.

Media contact

Emilie Murphy
emilie.murphy@anrok.com

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Alternative Data Market to Reach USD 40.35 Billion by 2035 as AI Developers and Corporations Expand Data Buying, Credence Research Finds

Published

47 seconds ago

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October 21, 2026

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LONDON, Oct. 21, 2026 /PRNewswire/ — Credence Research Inc. has added a new global Alternative Data Market study to its market intelligence portfolio, examining the competitive, technological and regulatory factors shaping demand through 2035.

The global alternative data market was valued at USD 6.32 billion in 2025 and is projected to increase to USD 7.56 billion in 2026 before reaching USD 40.35 billion by 2035, according to Credence Research. The forecast represents a 20.37% compound annual growth rate from 2025 to 2035. All market sizes, segment shares and regional shares are Credence Research estimates.

Key Takeaways

Credence Research estimates 2025 revenue of USD 6.32 billion and a 2035 market value of USD 40.35 billion, equivalent to 20.37% annualized growth over 10 years.North America represented 57.3% of modeled global value in 2025.Card and receipt transactions led the data type category with a 22.4% share.Hedge funds accounted for 24.6% of the end user category.Web-scraped data is forecast to grow at 24.00% annually, while Technology and AI developers is projected at 28.50%.The analysis distinguishes market revenue from adjacent products and services to avoid treating unrelated spending as part of the addressable market.

Scope & Segmentation – Alternative Data Market

The study measures licensed nontraditional datasets used for investment research, commercial intelligence and AI applications, including card and receipt panels, web traffic, app use, web-scraped information, geolocation, satellite data and sentiment feeds. Conventional market prices, ratings, cloud storage and consulting fees are excluded. Revenue is allocated to the buyer geography and is expressed in current U.S. dollars. The report evaluates the commercial drivers, market restraints, supplier positions and technology transitions affecting this defined market.

By data type: Card and receipt transactions; Web traffic and app usage; Web-scraped data; Geolocation and foot traffic; Satellite and weather data; Social and sentiment data; Other ESG, employment and B2B data.By end user: Hedge funds; Asset managers and investment institutions; Retail and consumer companies; Technology and AI developers; Other corporates and public sector.By region: North America; Europe; Asia Pacific; Latin America; Middle East and Africa.

Explore the full report: https://www.credenceresearch.com/report/alternative-data-market 

Why This Report Matters

Defines the revenue boundary around purchased information rather than bundling unrelated analytics software and financial reference data.Compares investment-firm demand with newer corporate and AI developer use cases, including the privacy and licensing requirements that shape adoption.Provides a framework for evaluating vendor quality, consent, geographic coverage and data reliability before buyers commit to long-term contracts.

Market Overview

Alternative data vendors increasingly sell the same underlying information to different buyer groups. Quantitative funds use transaction, web and location panels to estimate business performance before quarterly filings. Retailers apply those signals to site selection and competitor analysis, while AI developers license web and app information for model training and retrieval workflows.

The forecast reflects a modeled change in buyer adoption, supplier economics and product mix rather than a guarantee of future transactions. Credence Research evaluates these mechanisms alongside recent regulatory and corporate developments. Decision-makers should distinguish disclosed company announcements from estimates of total market revenue.

Market Insights

Base year: 2025; forecast horizon: 2035; modeled CAGR: 20.37%.Largest modeled geography: North America (57.3% of 2025 value).Leading categories: Card and receipt transactions (22.4%) and Hedge funds (24.6%).Fast-growth categories: Web-scraped data (24.00% CAGR) and Technology and AI developers (28.50% CAGR).Geographic and segment shares are proprietary Credence Research model outputs, not audited vendor market-share disclosures.

Key Attributes

Attribute

Details

Historical period

2018–2025, as listed in the report

Base year

2025

Forecast period

2025–2035

Market size, 2025

USD 6.32 billion

Estimated market size, 2026

USD 7.56 billion

Market size forecast, 2035

USD 40.35 billion

Revenue CAGR, 2025–2035

20.37 %

Coverage

Global

Segments covered

Data type; End user

Geographies

North America; Europe; Asia Pacific; Latin America; Middle East and Africa

Market Segmentation Analysis

By data type

Card and receipt transaction panels led data types with 22.4% of 2025 spending because they can help estimate consumer revenue before corporate reporting. Web-scraped information is the fastest-growing data type in the model, supported by price monitoring, job-posting analysis and licensed AI data feeds.

By end user

Hedge funds accounted for 24.6% of 2025 end-user spending. Technology and AI developers have the faster modeled growth rate as demand expands from trading signals into model training, retrieval systems and agent-ready data services.

Card and receipt transactions held 22.4% of the data type segment in 2025, while Hedge funds led the end user split at 24.6%. Credence Research forecasts faster growth for Web-scraped data (24.00% a year) and Technology and AI developers (28.50% a year). These figures represent market estimates and are not company-reported results.

Market Drivers and Opportunities

Faster commercial signals

Card-spending, store-visit and app-usage panels can reveal operating trends before financial results are released. Funds buy such feeds to build forecasts, while retailers use them to compare competitors and local markets. Data coverage, representativeness and historical consistency determine whether these signals justify recurring subscription fees.

AI training and agent-ready feeds

Model developers are seeking licensed and documented sources of web, app and commerce data. Vendors that deliver clean feeds through APIs and data marketplaces can reach customers outside the hedge fund sector. Contracts for model training also require clear rights to collect, transform and reuse source information.

Distribution through existing research platforms

Financial-information terminals and cloud marketplaces reduce the engineering work required to test a new dataset. Bloomberg’s 2025 integration of Similarweb traffic data is one example of this route to market. Distribution can broaden adoption, although vendors may surrender part of the economics to aggregators.

Regional Analysis

Credence Research estimates the following shares of global 2025 revenue: North America 57.3%; Europe 22.1%; Asia Pacific 14.6%; Latin America 3.1%; Middle East and Africa 2.9%. These allocations sum to 100% and reflect buyer location rather than the location of manufacturing or company headquarters.

North America led the market in 2025, supported by its established buyer base, supplier relationships and industry infrastructure. Europe and Asia Pacific are also material demand centers, although the competitive mix and procurement requirements vary by country. The smaller regions may record high percentage growth from a limited starting base, and such rates should not be mistaken for leadership in absolute spending.

North America benefits from a dense concentration of quantitative funds, financial data platforms and AI developers. European buyers must navigate stringent personal-data rules, which increases demand for licensed and aggregated feeds. Asia Pacific adds demand from financial centers and domestic digital platforms but faces varying localization requirements.

Market Challenges

Sensitive geolocation and transaction data create privacy, consent and national-security concerns. U.S. enforcement actions and cross-border data restrictions make diligence a core purchase requirement. Panel drift, incomplete histories and nonrepresentative samples can undermine the value of apparently timely signals; a faster feed is not necessarily a better forecast.

Buyers should also evaluate the total cost of adoption, interoperability with existing systems, vendor continuity and country-specific compliance obligations. Those factors can lengthen purchasing decisions even where the long-term growth thesis remains intact. The study distinguishes these commercial constraints from the market forecast itself.

Future Outlook

North America holds the largest modeled share because it hosts many hedge funds, data vendors and AI companies. Asia Pacific has the fastest forecast regional growth as investment institutions and local digital platforms expand. The strongest opportunities lie in licensed, traceable and AI-ready datasets that meet regulatory and quality standards.

Through 2035, suppliers that convert product capabilities into repeatable deployments, transparent pricing and reliable support should be better positioned than firms relying only on early demonstrations. Credence Research expects growth to vary across customer types and geographies rather than advance evenly each year.

Competitive Landscape

The market includes established multinational suppliers and specialized technology or service providers. Competition centers on product performance, customer relationships, integration capabilities, delivery reliability and the ability to meet sector-specific standards. The companies listed below participate in different parts of the value chain; their inclusion does not imply identical offerings or a verified ranking by market share.

Competitive analysis should distinguish vendors that directly sell the products or services in the defined scope from adjacent technology providers and end users. Credence Research uses supplier disclosures and industry evidence to assess participation. Comparable revenue for the narrow market definition is rarely disclosed, so this release does not assign unsupported individual company shares.

Key Players

BloombergS&P Global Market IntelligenceLSEGFactSetMoody’sSimilarwebPlacer.aiPlanet LabsYipitDataConsumer EdgeM ScienceThinknum

Recent Developments

June 2025: Bloomberg made Similarweb web-traffic analytics available through the Bloomberg Terminal ALTD function alongside other alternative datasets. 

January 2025: The U.S. Federal Trade Commission finalized its order restricting Gravy Analytics and Venntel from selling sensitive location data. 

Report Coverage

The full study covers market size and forecast, competitive conditions, value-chain structure, product and application segmentation, regional demand, market drivers, restraints, opportunities and regulatory developments. It provides a 2025 baseline and 2035 outlook and identifies areas where supplier disclosures support, but do not independently establish, Credence Research market estimates.

Explore the full report: https://www.credenceresearch.com/report/alternative-data-market  

Table of Content –

Chapter 1 Market Segmentation

Chapter 2 Introduction

Chapter 3 Executive Summary

Chapter 4 Global Alternative Data Market Trends and Developments

Chapter 5 Global Alternative Data Market Production, Supply and Demand Analysis

Chapter 6 Global Alternative Data Market Pricing Analysis

Chapter 7 Global Alternative Data Market Dynamics

Chapter 8 Global Alternative Data Value Chain Analysis

Chapter 9 Global Alternative Data Market Regulations and Policies

Chapter 10 Global Alternative Data Market Hotspots and Opportunities

Chapter 11 Global Alternative Data Market Outlook, 2025-2035

Chapter 12 Global Alternative Data Market Segmentation and Outlook

Chapter 13 Global Alternative Data End-Use and Application Market Outlook

Chapter 14 Global Alternative Data Geographic Market Outlook, 2025-2035

Chapter 15 Global Alternative Data Technology, Innovation and Sustainability Outlook

Chapter 16 Global Alternative Data Market Key Strategic Imperatives

Chapter 17 Competition Outlook

Chapter 18 Company Profiles

Chapter 19 Disclaimer

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About Us

Credence Research Inc. is a global market intelligence and consulting firm founded in 2015. It delivers market insights, quantitative analysis and strategic guidance to business leaders, investors, governments and nonprofit organizations. The company helps clients evaluate market opportunities, understand competitive dynamics and make informed strategic decisions.

Credence Research produces industry studies covering market size, forecasts, growth drivers, market trends and competitive landscapes. Its services also include customized research, commercial due diligence and go-to-market advisory. Findings draw on primary and secondary research, expert input and analytical modeling.

Contact Us

Credence Research Inc.
Tower C-1105, S 25, Akash Tower
Vishal Nagar, Pimple Nilakh, Haveli
Pune – 411027, India
USA: +1-888-600-6441
Email: sales@credenceresearch.com 
Website: www.credenceresearch.com 

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TECHNATION Appoints New Board Leadership and Welcomes Industry Leaders to National Board

Published

50 seconds ago

on

October 21, 2026

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TORONTO, Oct. 21, 2026 /CNW/ — TECHNATION, Canada’s national technology industry association, is pleased to announce the appointment of Sylvie Ouellette as Chair and Colin McIsaac as Vice Chair of its National Board of Directors.

Sylvie Ouellette is President and Co-Founder of Versatil BPI Inc., a Canadian-owned, women-led technology SME based in the National Capital Region, specializing in data, artificial intelligence, and security intelligence. She has more than 30 years of industry experience, including senior executive roles at Electronic Data Systems and Hewlett-Packard. As Chair, she brings both multinational leadership, including representing TECHNATION at the last two G7/TECH7 summits, and firsthand experience building a Canadian technology company.

Colin McIsaac is the Vice-President, North America Commercial Sales at Lenovo, responsible for strategy and performance across the NA VLB Segment and Canada’s Public Sector business. A prominent voice on the North America Senior Leadership Team, he oversees sales, operations, culture, and P&L execution to ensure Lenovo consistently delivers industry‑leading value for customers. Under his leadership, the team brings Lenovo’s complete portfolio of hardware, software, and services to market, fueling growth through innovation, customer partnership, and operational excellence.

Sylvie and Colin have been active members of TECHNATION’s Board of Directors for several years, serving on the Executive Committee and Governance Committee, respectively.

“We are pleased to welcome Sylvie as Chair and Colin as Vice Chair to TECHNATION’s National Board of Directors,” said Kevin d’Entremont, President and CEO of TECHNATION. “As seasoned members of our National Board, they have been engaged in shaping the focus of TECHNATION in supporting the full technology ecosystem in Canada. Their combined expertise, leadership, and commitment to advancing Canada’s technology ecosystem will be invaluable as we continue to advance the priorities that matter most to the sector and to Canada’s digital future.”

In addition to these appointments, TECHNATION is pleased to welcome four industry leaders to its Board of Directors:

Heather Black, Regional Vice-President, Canadian Public Sector Leader, Palo AltoPeter Kelcey, General Manager, Customer Success Lead, Microsoft CanadaErin O’Halloran, Vice President & General Manager, Oracle Health CanadaRaj Thuppal, Chief Digital Officer – Public Sector, ServiceNow Canada

These appointments come at a pivotal moment for Canada, as governments and businesses accelerate the adoption of digital technologies that are transforming how the economy operates and grows.

“I am honoured by the trust my fellow Board members have placed in me to lead TECHNATION at such a defining moment for Canada,” said Ouellette. “As technology reshapes our economy, national security, and global competitiveness, we must strengthen Canada’s capacity to innovate, advance responsible AI, and ensure Canadian businesses across the full ecosystem help shape our digital future. I look forward to working with our members and government partners to turn collaboration into action that delivers meaningful value for Canadians.”

Together, these appointments strengthen TECHNATION’s commitment to bring industry expertise to inform public policy, champion member priorities, and advance initiatives that support Canada’s digital and economic growth. Their leadership will help drive key priorities including digital transformation, procurement reform, workforce development, and Canada’s long-term competitiveness.

TECHNATION also extends its sincere thanks to outgoing Board Chair, Lloyd Switzer, retired Chief Procurement Officer at TELUS, for his leadership and dedication to the board. “Lloyd has been an invaluable leader at TECHNATION, guiding the association through a period of executive transition, while bringing a strong industry perspective through his role as Chief Procurement Officer at TELUS,” said d’Entremont. “While his retirement marks the end of an exceptional chapter, he has ensured a smooth transition and a bright future for our association and Canada’s tech sector.”

TECHNATION’s National Board is comprised of senior executives from across Canada’s technology landscape, representing both Canadian tech firms and global enterprises with significant operations and investments in Canada. A full list of TECHNATION’s National Board of Directors can be found at www.technationcanada.ca.

About TECHNATION

TECHNATION is Canada’s authoritative technology industry association, representing the full spectrum of Canada’s tech ecosystem, from agile innovators to domestic and global tech companies. Trusted by both industry and government, TECHNATION is the neutral connector, convener and catalyst powering a digital future and positioning Canada as a global tech leader. Together with our members, we shape tech policy and insights, deliver forums to drive public-private collaboration, foster inclusive workforce development, and support global expansion. Learn more at www.technationcanada.ca.

SOURCE TECHNATION Canada

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