Splunk reports worse than expected Q3 EPS, but revenues beat estimates

Splunk (NASDAQ:) reported its Q3 results, with EPS of $0.55 coming in worse than the consensus estimate of $1.15. Meanwhile, revenues grew 14.8% year-over-year to $1.07 billion, beating the consensus estimate of $1.03B.

The company’s total ARR reached $4.0B, a 15% rise year-over-year. The Cloud segment ARR grew 26% year-over-year to $2.0B, and now represents the majority of total ARR.

“Splunk delivered a solid third quarter and marked several milestones in our journey to deliver exceptional customer and shareholder value, including our agreement to join forces with Cisco (NASDAQ:),” said CEO Gary Steele.

According to Steele, the quarterly results reflect the company’s commitment to innovation, focus on customers, and consistent execution, noting that he is confident they are well-positioned for the future.