Cisco reported fiscal first-quarter revenue of $18.5 billion and adjusted EPS of $1.40, beating estimates, and raised its AI infrastructure revenue forecast for fiscal 2027 to $9 billion, more than double fiscal 2026.
Cisco Systems reported fiscal first-quarter results that topped Wall Street estimates and raised its full-year outlook, citing demand for AI networking gear from hyperscalers.
Revenue for the quarter ended October 24 was $18.5 billion, up 24% from a year earlier. Non-GAAP earnings per share were $1.40, compared with the $1.33 consensus estimate. GAAP net income was $4.6 billion, or $1.14 per share, up from $2.9 billion, or 72 cents per share, a year earlier.
Product revenue rose 32%, led by networking, which climbed 43% to $11.1 billion. Security revenue rose 7%, collaboration 8%, observability 2%, and services 1%. Revenue grew 28% in the Americas, 18% in EMEA, and 21% in APJC.
Cisco raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion this fiscal year, more than double the figure in fiscal 2026.
"Organizations are turning to Cisco for our trusted, market-defining technology and our expertise to help them scale, secure and optimize their environments for the agentic AI era," CEO Chuck Robbins said in the statement.
Robbins also said the company is in the "very early stages of a multiyear network supercycle."
For fiscal 2027, Cisco raised its revenue guidance to $74.8 billion to $75.8 billion and its non-GAAP earnings per share guidance to $5.47 to $5.53. For the second quarter, the company expects revenue of $18.0 billion to $18.2 billion and non-GAAP earnings per share of $1.34 to $1.36, above analyst estimates of $17.88 billion and $1.23.
Cisco returned $3.7 billion to shareholders through dividends and buybacks during the quarter and declared a quarterly dividend of $0.42 per common share.
Cisco’s results show that AI infrastructure spending is extending beyond chipmakers into traditional networking vendors. The company’s $9 billion AI revenue target, more than double fiscal 2026, signals that hyperscalers continue to invest in networking gear to connect AI clusters, even as some investors worry about a slowdown in data center building.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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