Chief Financial Officer at Cisco Systems
We started the fiscal year with a strong Q1 performance. We executed well, resulting in another quarter of more than 30% product order growth driven by strength across our portfolio and demonstrating continued robust demand for our products and services. We also had strong results across revenue, net income and earnings per share.
Total revenue increased to $12.9 billion, up 8% year-over-year coming in line with our guidance range for the quarter. We saw strength in a number of product areas and across all geographies. Our business continues to execute well in this highly dynamic environment, but ongoing component supply constraints are impacting our ability to convert historically high demand into revenue as quickly as we'd like. Non-GAAP operating margin was 33.3%, up 60 basis points. Non-GAAP net income was $3.5 billion, and non-GAAP earnings per share was $0.82, both up 8% year-over-year, with non-GAAP EPS coming in above the high end of our guidance range.
Looking at our Q1 revenue in more detail. Total product revenue was $9.5 billion, up 11%; service revenue was $3.4 billion, up 1%. Secure Agile Networks performed very well, with revenues up 10%. Switching had strong growth, driven by a double-digit increase in campus switching led by our Catalyst 9000 and Meraki switching offerings. The enterprise routing portfolio had high-single digit growth driven by Edge and SD-WAN. Wireless had very strong double-digit increase driven by our WiFi 6 products and Meraki wireless offerings. We had growth in data center switching, and compute revenue declined slightly. Hybrid Work was down 7% overall, driven by revenue decreases in our perpetual calling, meetings and contact center offerings. These were partially offset by the ramp of communication platform-as-a-service and growth in our collaboration devices.
Within Hybrid Work, our SaaS revenue continues to show growth of high single digits, driven by cloud calling and contact center. End-to-End Security was up 4%, driven by growth in our cloud-based solutions, also offset by declines in our perpetual and hardware offerings. Our Zero Trust portfolio performed well with double-digit growth as we had continued momentum in our Duo offerings. We also saw good growth in Unified Threat Management. Here again our subscription portfolio performed well growing 15%, driven by our cloud security and Zero Trust platforms. Internet for the Future was up 46%, driven in large part by the strength of our Webscale customers.
We saw broad strength in the portfolio with growth in cloud, growth in core with strength in both Cisco 8000 and NCS 5500, and growth in Edge with the ASR 9000. We also saw benefits from our acquisition of Acacia. Optimized Application Experiences was up 18%, driven by both ThousandEyes, which grew triple digits and Intersight which grew in the strong double digits. SaaS revenue for AppDynamics grew double-digits, as its revenue shifted to a greater proportion from its cloud delivered platform.
Our transformation metrics we covered Investor Day were solid, as we continue to shift our business to more software and subscriptions. Software revenue was $3.7 billion, an increase of 1% with the product portion up 3%. 80% of software revenue was subscription-based, which was up 2 percentage points year-over-year. Total subscription revenue was $5.5 billion, an increase of 4%, with the product portion increasing at 7%. Total subscription revenue represented 43% of Cisco's total revenue.
ARR or annualized recurring revenue was $21.6 billion, an increase of 10% with strong product ARR growth of 21%. And remaining performance obligations or RPO was $30.1 billion, up 10%. Product RPO increased 18% and short-term RPO grew 9% to $15.9 billion. As you can see, we continue to make significant progress on the transformation to increased software and subscriptions. We continued to have exceptionally strong order momentum in Q1 with total product orders up 33% as Chuck mentioned earlier, with strength across the business.
Looking at our geographic segments, the Americas was up 31%, EMEA was up 36%, and APJC was up 39%. Total emerging markets were up 37%, with the BRICS plus Mexico up 47%. In our customer markets, service provider was up 66%, commercial was up 46%, enterprise was up 30%, and public sector was up 10%. As you can see it was broad strength across the business. From a non-GAAP perspective, total gross margins came in at 64.5%, down 130 basis points year-over-year, product gross margin was 63.8%, down 150 basis points, and service gross margin was 56.5%, down 60 basis points. The decrease in product gross margin was primarily driven by higher costs from freight, expedite and increased component costs related to the supply constraints.
Pricing impact was relatively moderate and consistent with prior quarters, partially offset by positive product mix. We continue to manage through the supply constraints seen industry-wide by us and our peers due to component shortages, which have resulted in extended lead times and higher costs for many of these components. We are partnering closely with our key suppliers, leveraging our volume purchasing and extended supply commitments as we address the supply challenges and cost impacts, which we expect will continue into the second half of fiscal 2022. Our supply chain team continues to perform well with this very complex situation.
We believe we're taking the right strategic actions with our suppliers and contract manufacturers to ensure we meet customer demand, despite the potential risk associated with increasing our inventory and purchase commitments. When we look at the impact of acquisitions on our Q1 results, there was an approximate 250 basis point positive impact on revenue and no material impact on our non-GAAP EPS, which is in line with our expectations. Operating cash flow for the quarter was $3.4 billion, down 16% year-over-year, driven by higher supply related payments and timing of other payments and collections. We ended Q1 with total cash, cash equivalents and investments of $23.3 billion, down approximately $1.2 billion sequentially primarily driven by $2 billion in scheduled repayments of our long-term debt.
In terms of capital allocation, we returned $1.8 billion to shareholders during the quarter, that was comprised of $1.6 billion for our quarterly cash dividend and $256 million of share repurchases. We continued to invest organically and inorganically in our innovation pipeline. During Q1, we closed the acquisition of Epsagon and announced our intent to acquire Replex. These investments are consistent with our strategy of complementing our internal innovation and R&D with targeted M&A to allow us to further strengthen and differentiate our market position in our key growth areas.
To summarize, we had a strong Q1 in a complex supply constrained environment. We executed well a strong top line revenue and earnings per share as we delivered balanced profitable growth. We continue to make great progress on our business model shift and are continuing to make the investments in innovation to capitalize on our significant growth opportunities. We're seeing progress as we drive the continued shift to more software and subscription revenue delivering growth and driving shareholder value.
Now let me provide our financial guidance for Q2, which is as follows. We expect revenue growth to be in the range of 4.5% to 6.5% year-on-year. We anticipate non-GAAP gross margin to be in the range of 63.5% to 64.5%, reflecting the continuing increase in supply chain costs we're incurring as we protect shipments to our customers. Our non-GAAP operating margin is expected to be in the range from 32.5% to 33.5%, and non-GAAP earnings per share is expected to range from $0.80 to $0.82. There is no change to our full year fiscal '22 guidance. We expect revenue growth to be in the range of 5% to 7% year-on-year, non-GAAP earnings per share is expected to range from $3.38 to $3.45, also up 5% to 7% year-over-year.
In both our Q2 and full-year guidance, we are assuming a non-GAAP effective tax rate of 19%. I'll now turn it back to Marilyn, so we can move into the Q&A.