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Key takeaways
- Cisco reported adjusted EPS of $1.40 against the analyst consensus estimate of $1.35.
- Q1 FY 2027 revenue was $18.52 billion, up 24% year over year, with Networking up 43%.
- Cisco raised FY 2027 guidance to revenue of $74.8 billion – $75.8 billion and non-GAAP EPS of $5.47 – $5.53.
Cisco Systems earnings beat estimates, with Adjusted EPS of $1.40 beat the analyst consensus estimate of $1.35 and Revenue of $18.52 billion beat the analyst consensus estimate of $18.52 billion. Cisco said non-GAAP EPS rose 40% year over year in the first quarter of fiscal 2027. Revenue of $18.52 billion was up 24% year over year. The quarter ended October 24, 2026.
According to the release, Cisco raised its FY27 revenue and non-GAAP EPS guidance. It also raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion in FY27, more than double the total for FY26.
Cisco Systems earnings: the details
- “In Q1, we delivered the strongest revenue and non-GAAP earnings per share growth rates for Cisco in over 15 years,” said Chuck Robbins, chair and CEO of Cisco.
- “The strength of our Q1 performance gives us confidence to raise our revenue and non-GAAP EPS guidance for FY27,” said Mark Patterson, CFO of Cisco.
Cisco said product revenue rose 32% and services revenue rose 1%. By region, Americas rose 28%, EMEA rose 18% and APJC rose 21%. Security grew 7%, Collaboration 8% and Observability 2%.
For the second quarter of fiscal 2027, Cisco guided to revenue of $18 billion – $18.2 billion and non-GAAP EPS of $1.34 – $1.36. It estimates GAAP EPS of $1.07 to $1.09 for that quarter and $4.38 to $4.44 for fiscal 2027.
Cash flow from operating activities was $4.4 billion, up 36%, according to the release. Remaining performance obligations reached $46.2 billion, up 8%. Cisco returned $3.7 billion to stockholders through share buybacks and dividends.
Cisco declared a quarterly dividend of $0.42 per common share, the company said. It will be paid on January 20, 2027, to stockholders of record as of January 4, 2027. The remaining repurchase authorization is $6.1 billion with no termination date.
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Background to the Cisco Systems earnings
Cisco (NASDAQ: CSCO) describes itself as the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era, according to the release. It has securely connected the world for more than 40 years. Its product lines include Networking, Security, Collaboration and Observability. In the first quarter of fiscal 2027 it closed the acquisition of WideField Security Inc., a privately held security company.
What this means
For CSCO holders, Cisco said its Q1 revenue, non-GAAP operating margin and non-GAAP EPS all exceeded the high end of its guidance ranges. Networking drove the quarter, while services grew 1%. Charges from a restructuring plan announced on May 13, 2026 remain in guidance, and the plan is due to be substantially completed by the end of fiscal 2027.
Analysis
The quarter shows Cisco growing earnings faster than revenue, which the CFO tied to operating leverage as the business scales. Networking, up 43%, carried most of the gain, while Security, Collaboration and Observability grew in single digits. That concentration suggests results may depend heavily on AI infrastructure spending, which the release flags through its raised $9 billion hyperscaler expectation.
What remains open is whether that demand holds. The risk factors cite large and concentrated purchases by cloud and hyperscaler customers and the timing of AI infrastructure deployments. Q2 FY 2027 guidance of $18 billion to $18.2 billion sits below the $18.52 billion just reported, so the coming quarters will test the raised full-year range.
What to watch
- November 18, 2026: Conference call replay availability ends. The call covers management commentary on the raised FY27 guidance.
- January 20, 2027: Quarterly dividend of $0.42 per share paid. It continues Cisco’s capital returns to stockholders.
- Q2 FY 2027 results versus $18.0 billion to $18.2 billion revenue guidance. It will show whether Cisco delivers on its raised outlook.
The crypto angle
- Cisco Systems, Inc. has 9 tokenized versions across more than 10 blockchains: Arbitrum One, Ethereum, Robinhood Chain, Solana, BNB Smart Chain, Base, Avalanche, TON, HyperEVM, Ink, and Morph L2.
More market coverage: Crypto Briefing Markets
Source: Cisco Systems, 2026-11-12 21:05 UTC
