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Cisco tops fiscal first-quarter estimates on AI networking demand and raises full-year guidance

Cisco posted higher-than-expected revenue of $18.5 billion and non-GAAP earnings of $1.40 per share for its fiscal first quarter, boosted by surging AI networking demand, and lifted its outlook for the remainder of the fiscal year.

Stock chart displaying Cisco shares surging nearly 8% in after-hours trading following fiscal Q1 earnings.
Image: @TrendSpider

Cisco delivered better-than-expected results for its fiscal first quarter and raised its forecast for the remainder of fiscal 2027, according to Barron's. Revenue climbed 24% year over year to a record $18.5 billion, topping consensus projections of $18.13 billion, while adjusted non-GAAP earnings reached $1.40 per share, surpassing estimates of $1.33.[1][3][4][5]

Growth was led by networking products, which generated $11.1 billion in revenue, up 43% from a year earlier, according to figures shared by Wall St Engine. Security revenue rose 7% to $2.1 billion, collaboration revenue gained 8% to $1.1 billion, and observability revenue increased 2% to $279 million. Total product orders rose 32% year over year, with AI infrastructure orders reaching $9 billion for fiscal 2027, more than double fiscal 2026. The company noted that it is in the very early stages of a multi-year networking supercycle driven by AI demand.[1][5]

For the full fiscal year, Cisco lifted its revenue forecast to between $74.8 billion and $75.8 billion and projected non-GAAP EPS between $5.47 and $5.53. For the second quarter, it guided revenue to $18.0 billion to $18.2 billion and adjusted EPS to $1.34 to $1.36. Following the report, Cisco shares surged, with CNBC reporting a 5% gain and TrendSpider noting an after-hours rise of roughly 8% from a session close of $101.90 to $109.84.[2][4][5]

Key facts

  • Cisco reported fiscal Q1 2027 revenue of $18.5 billion, up 24% year over year, beating Wall Street estimates of $18.13 billion.
  • Non-GAAP EPS for the first quarter was $1.40, a 40% increase year over year, above the estimated $1.33.
  • Cisco raised its fiscal 2027 revenue guidance to $74.8 billion-$75.8 billion and non-GAAP EPS guidance to $5.47-$5.53.
  • Networking revenue surged 43% year over year to $11.1 billion, while AI infrastructure orders reached $9 billion in fiscal 2027, more than doubling fiscal 2026 levels.
  • Cisco guided fiscal second-quarter revenue to $18.0 billion-$18.2 billion and non-GAAP EPS to $1.34-$1.36.
  • Remaining performance obligations totaled $46.2 billion, up 8% year over year, and operating cash flow rose 36% to $4.4 billion.
  • Cisco shares rose between 5% and 8% in after-hours trading following the announcement.

Sources · 5 sources

  1. CB

    Crypto BriefingArticle ·

    Cisco revenue jumps 24% to record $18.5B on AI networking demand Cisco's revenue surge highlights the increasing reliance on AI infrastructure, potentially reshaping tech investment priorities and market dynamics. The post Cisco revenue jumps 24% to record $18.5B on AI networking demand appeared first on Crypto Briefing .

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  2. CN

    CNBC@CNBCPost on X ·

    Cisco stock jumps 5% on earnings and revenue beat https://t.co/0814alG0y8

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  3. BA

    Barron's@barronsonlinePost on X ·

    Cisco reported better-than-expected results for its fiscal first quarter and lifted its outlook for the rest of the year. https://t.co/veNWXHXMAt

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  4. TR

    TrendSpider@TrendSpiderPost on X ·

    $CSCO Q1 EARNINGS GOD CANDLE Adj EPS: $1.40 vs $1.33 est ✅ Sales: $18.5B vs $18.1B est ✅ 🟩 +8% in after-hours https://t.co/DrPs2PuKJx

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  5. WS

    Wall St Engine@wallstenginePost on X ·

    CISCO $CSCO Q1’27 EARNINGS HIGHLIGHTS 🔹 Revenue: $18.5B (Est. $18.13B) 🟢; +24% YoY 🔹 Non-GAAP EPS: $1.40 (Est. $1.33) 🟢; +40% YoY 🔹 Non-GAAP Gross Margin: 65.6% (Est. 65.5%) 🟡 🔹 Non-GAAP Oper Income: $7.0B (Est. $6.57B) 🟢; +37% YoY Raises FY27 Guide: 🔹 Revenue: $74.8B-$75.8B (Est. $73.02B) 🟢 🔹 Non-GAAP EPS: $5.47-$5.53 (Est. $5.11) 🟢 Q2 Guide: 🔹 Revenue: $18.0B-$18.2B (Est. $17.88B) 🟢 🔹 Non-GAAP EPS: $1.34-$1.36 (Est. $1.23) 🟢 🔹 Non-GAAP Gross Margin: 65%-66% (Est. 64.5%) 🟢 🔹 Non-GAAP Operating Margin: 36%-37% Product Category Revenue: 🔹 Networking: $11.1B; +43% YoY 🔹 Security: $2.1B; +7% YoY 🔹 Collaboration: $1.1B; +8% YoY 🔹 Observability: $279M; +2% YoY Other Q1 Metrics: 🔹 Product Orders: +32% YoY 🔹 AI Infra Orders: $9B in FY27; more than double FY26 🔹 RPO: $46.2B; +8% YoY 🔹 Operating Cash Flow: $4.4B; +36% YoY Capital Return: 🔹 Dividend: $0.42/share 🔹 Returned to Stockholders: $3.7B Comments: 🔸 “We are in the very early stages of a multi-year networking supercycle, and we're confident in our ability to continue capturing the multi-billion-dollar opportunity it represents for Cisco.”

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