Cisco Posts Record $18.5B Revenue, Raises Outlook on AI Demand
Cisco posted record quarterly revenue of $18.5 billion, up 24%, beat Wall Street estimates and raised its full-year outlook as AI networking demand surged.
Image: Wikimedia Commons / Travis Wise
SAN JOSE, Calif., Nov. 12 — Cisco Systems reported record quarterly revenue of $18.5 billion for the three months ended October 24, up 24 percent from a year earlier, and raised its full-year outlook, as demand for the networking gear connecting AI data centers powered its strongest growth in more than 15 years.
The networking company’s adjusted earnings reached $1.40 per share, up 40 percent from a year earlier, while net income on a generally accepted accounting principles basis rose 59 percent to $4.6 billion. Both figures beat Wall Street expectations of about $1.33 per share in adjusted earnings on revenue of about $18.1 billion.
Key takeaways
- Record revenue of $18.5 billion, up 24 percent year over year, with product revenue up 32 percent and services revenue up 1 percent.
- Adjusted earnings of $1.40 per share, up 40 percent; GAAP earnings of $1.14 per share, up 58 percent.
- Full-year guidance raised to revenue of $74.8 billion to $75.8 billion and adjusted earnings of $5.47 to $5.53 per share.
- Shares rose 1.8 percent in after-hours trading to $103.86 after closing at $102.01.
Cisco Q1 Fiscal 2027 Results: Revenue, Earnings and Margins
Product revenue rose 32 percent while services revenue grew 1 percent, as customers bought more switches and routers for AI data centers. Operating income on a generally accepted accounting principles basis rose 66 percent to $5.6 billion, taking the GAAP operating margin to 30.2 percent, while the adjusted operating margin reached 37.8 percent.
The quarter closed a fiscal year in which Cisco’s revenue rose 12 percent to a record $63.3 billion.
| Metric | Q1 fiscal 2027 | Year earlier | Change |
|---|---|---|---|
| Revenue | $18.5 billion | $14.9 billion | +24% |
| GAAP earnings per share | $1.14 | $0.72 | +58% |
| Adjusted earnings per share | $1.40 | $1.00 | +40% |
Cisco Raises Full-Year Guidance as AI Networking Demand Grows
Cisco lifted its fiscal 2027 revenue forecast to between $74.8 billion and $75.8 billion, up from $72.2 billion to $73.4 billion, and raised its adjusted earnings forecast to $5.47 to $5.53 per share, up from $5.05 to $5.11. The company expects about $7.5 billion of revenue from hyperscale AI infrastructure customers in fiscal 2027, up from about $4 billion in fiscal 2026, after taking $9.3 billion of AI infrastructure orders during fiscal 2026.
The results arrived on the same evening that Applied Materials, the chipmaking equipment supplier, reported record quarterly revenue of $10.41 billion, up 53 percent. Rival Arista Networks grew revenue 58 percent in its latest quarter. Google is also pressing ahead with its own AI infrastructure, putting its new Gemini model into Search for all users this week.
How Cisco Shares Reacted and What Comes Next
Cisco shares closed at $102.01 on Thursday, up 1.2 percent on the day, and rose a further 1.8 percent in after-hours trading to $103.86. The stock remains well below its June high near $130, after losing about a quarter of its market value during the autumn slide in AI hardware stocks, leaving the company valued at about $386 billion.
The chip sector has been in focus all week, from Nvidia’s leadership upheaval to a federal probe into alleged chip smuggling. Cisco also declared a quarterly dividend of $0.42 per share, payable on January 20, 2027, to stockholders of record on January 4, 2027.
Investors will get their next major read on AI infrastructure demand when Nvidia reports earnings on November 17. Cisco will report second-quarter results in February.
Frequently Asked Questions
How much revenue did Cisco report for Q1 fiscal 2027?
Cisco reported record revenue of $18.5 billion for the quarter ended October 24, up 24 percent from a year earlier. The figure beat Wall Street expectations of about $18.1 billion.
What is Cisco’s new full-year guidance for fiscal 2027?
Cisco raised its fiscal 2027 revenue forecast to $74.8 billion to $75.8 billion, from $72.2 billion to $73.4 billion. Adjusted earnings guidance rose to $5.47 to $5.53 per share, from $5.05 to $5.11.
How did Cisco shares react to the earnings report?
Shares closed at $102.01 on Thursday, up 1.2 percent, and rose a further 1.8 percent in after-hours trading to $103.86.
How much AI infrastructure revenue does Cisco expect in fiscal 2027?
Cisco expects about $7.5 billion of revenue from hyperscale AI infrastructure customers in fiscal 2027, up from about $4 billion in fiscal 2026. It took $9.3 billion of AI infrastructure orders during fiscal 2026.
