Strong performance in emerging markets
Cisco (CSCO) has seen tremendous growth in India, and it’s banking on the country’s strong GDP to drive future revenue.
At the Goldman Sachs (GS) Technology and Internet Conference, Cisco’s CEO Chuck Robbins stated that the company had posted impressive results in emerging markets (EEM) primarily due to great execution. The company’s rise in revenues from emerging markets was primarily driven by strong performances in Mexico, India, and China.
With respect to India, Robbins said, “We’ve seen tremendous success there. . .That’s one of the key countries that we have a country digitization effort. . .and our business there continues to grow very well.”
Revenues from Americas flat YoY in fiscal 2Q16
As shown in the above chart, revenues for Cisco generated from the Americas were flat YoY (year-over-year) in fiscal 2Q16, whereas revenues from EMEA (Europe, the Middle East, and Africa) fell 1%. On the other hand, APJC (Asia-Pacific, Japan, and China) revenues rose YoY to 17% in fiscal 2Q16.
Emerging market (EEM) revenues rose 7% in fiscal 2Q16. BRICM countries (Brazil, Russia, India, China, and Mexico) led the way with 17% growth. Cisco’s revenues in China rose by a considerable 64%, whereas revenues from India (INDA) rose by a healthy 23% in fiscal 2Q16.