Cisco CEO Chuck Robbins (pictured) touted the result of a shift to subscription-based software revenue, and new generative AI products and services, as he revealed fiscal Q4 2023 figures he claimed rounded out a milestone year.

CFO Scott Herren used an earnings call to note 85 per cent of its software revenue was subscription based.

“Looking at our [fiscal] Q4 revenue in more detail, total product revenue was $11.7 billion up 20 per cent,” Herren stated.

“Service revenue was $3.6 billion up 4 per cent.”

Robbins said Cisco “delivered on our operational and financial goals while accelerating our transformation” in fiscal 2023, which ended on 29 July.

He said security remained one of the company’s top priorities going forward, while new generative AI products announced during fiscal Q4 position it “very well to build out the infrastructure that hyperscalers and others need to build AI/ML clusters”.

He stated the company booked AI product orders of more than $500 million from top-tier companies.

“This is a huge opportunity for Cisco and we are laser-focused on leading and winning in this space.”

Fiscal Q4 net income grew 36 per cent year-on-year to $4 billion and revenue 16 per cent to $15.2 billion.

Software revenue rose 17 per cent to $4.6 billion and software subscription 20 per cent to $3.9 billion.

Total subscription revenue was $6.6 billion, up 13 per cent.

Fiscal 2023 profit grew 7 per cent to $12.6 billion with revenue up 11 per cent to $57 billion, which Robbins branded its highest growth rate in more than a decade.