Cisco Systems earnings beat estimates
Cisco Systems reported adjusted earnings per share of $1.40 for Q1 FY 2027, beating analyst consensus estimates, and raised its full-year revenue and EPS guidance for fiscal 2027.
Cisco Systems reported adjusted earnings per share of $1.40 for Q1 FY 2027, beating analyst consensus estimates of $1.35, and raised its full-year revenue and EPS guidance for fiscal 2027.
The company posted revenue of $18.52 billion, a 24% increase from the same period last year, with its Networking segment driving the growth at 43%.
The quarter ended October 24, 2026, and the results were driven by strong performance across its product lines, with product revenue rising 32% and services revenue growing 1%.
By region, revenue increased 28% in the Americas, 18% in EMEA, and 21% in APJC.
The company also raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion in FY27, more than double the total for FY26.
Raised guidance and outlook
Cisco raised its FY27 revenue guidance to $74.8–75.8 billion and its non-GAAP EPS guidance to $5.47–5.53, citing confidence from its strong Q1 performance.
For the second quarter of fiscal 2027, the company guided to revenue of $18.0–18.2 billion and non-GAAP EPS of $1.34–1.36.
In Q1, we delivered the strongest revenue and non-GAAP earnings per share growth rates for Cisco in over 15 years.
The strength of our Q1 performance gives us confidence to raise our revenue and non-GAAP EPS guidance for FY27.
Cisco also reported operating cash flow of $4.4 billion, up 36%, and remaining performance obligations of $46.2 billion, up 8%.
The company returned $3.7 billion to stockholders through share buybacks and dividends, and declared a quarterly dividend of $0.42 per common share.
AI infrastructure and hyperscalers
The company’s strong performance is largely attributed to increased demand for networking equipment, particularly from cloud and hyperscaler customers.
Cisco raised its forecast for AI infrastructure revenue from hyperscalers to $9 billion in FY27, more than double the total for FY26.
The company’s Networking segment, which includes routers and switches, grew 43% year-over-year, while Security, Collaboration, and Observability grew in single digits.
The risk factors cited by Cisco include large and concentrated purchases by cloud and hyperscaler customers and the timing of AI infrastructure deployments.
What to watch
Investors will be watching whether Cisco can sustain its growth momentum in the coming quarters, particularly as Q2 FY27 guidance of $18.0–18.2 billion sits below the $18.52 billion just reported.
The company’s conference call replay will be available until November 18, 2026, and the quarterly dividend of $0.42 per share will be paid on January 20, 2027.
The company’s remaining repurchase authorization is $6.1 billion with no termination date.
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