Cisco reported better-than-expected fiscal first-quarter results on Thursday, with shares rising in extended trading as the networking gear maker raised its forecast for AI infrastructure revenue from hyperscalers to $9 billion this fiscal year, more than double the figure in fiscal 2026.
For the quarter, Cisco reported adjusted earnings per share of $1.40, beating the $1.33 average estimate from LSEG. Revenue was $18.5 billion, above the $18.1 billion expected, a 24% increase from $14.88 billion a year earlier. Net income rose to $4.6 billion, or $1.14 per share, from $2.9 billion, or 72 cents per share, a year ago.
The company is trying to gain a foothold in the artificial intelligence buildout after missing out on the early years of the generative AI boom. Cisco's stock price is up about 35% this year as of Thursday's close, outperforming the Nasdaq's 9% gain.
In a statement, CEO Chuck Robbins said: "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."
For the fiscal second quarter, Cisco expects revenue between $18 billion and $18.2 billion, above the $17.88 billion analyst estimate, and adjusted earnings per share of $1.34 to $1.36, beating the $1.23 estimate.
Analysis
Why This Matters
- Cisco's AI infrastructure revenue forecast doubling signals growing demand for networking equipment in data centers for AI workloads.
- The strong earnings and guidance suggest Cisco is successfully pivoting to capture AI-related spending, which could influence investor sentiment in the networking sector.
- As companies deploy agentic AI systems, Cisco's role in scaling and securing networks becomes more critical.
Background
Cisco has been working to gain a foothold in the AI infrastructure market after initially missing the generative AI boom. The company's stock has risen about 35% this year as it positions itself as a key supplier for hyperscalers building AI data centers.
What to Watch
- Whether Cisco can sustain its AI revenue growth pace into fiscal 2027.
- The impact of AI infrastructure spending trends on Cisco's networking peers.
Checked
11 claims in this story checked against 1 source: 11 supported.
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- SupportedCisco beat estimates, forecasting that AI infrastructure revenue from hyperscalers would more than double this fiscal year.US Top News and Analysis: “Cisco raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion this fiscal year, more than double the figure in fiscal 2026.”
- SupportedCisco shares rose in extended trading as the company raised its AI infrastructure revenue outlook to $9 billion.US Top News and Analysis: “Cisco shares rose in extended trading on Thursday after the maker of networking gear reported better-than-expected fiscal first-quarter results.”
- SupportedCisco reported better-than-expected fiscal first-quarter results on Thursday.US Top News and Analysis: “Cisco shares rose in extended trading on Thursday after the maker of networking gear reported better-than-expected fiscal first-quarter results.”
- SupportedCisco reported adjusted earnings per share of $1.40, above the $1.33 LSEG estimate.US Top News and Analysis: “EPS: $1.40 adjusted vs. $1.33 expected”
- SupportedCisco revenue was $18.5 billion, above the $18.1 billion estimate, and up 24% from $14.88 billion a year earlier.US Top News and Analysis: “Revenue: $18.5 billion vs. $18.1 billion expected. Revenue increased 24% from $14.88 billion a year earlier, Cisco said in a statement.”
- SupportedCisco net income rose to $4.6 billion, or $1.14 per share, from $2.9 billion, or 72 cents per share, a year earlier.US Top News and Analysis: “Net income rose to $4.6 billion, or $1.14 per share, from $2.9 billion, or 72 center per share, a year ago.”
- SupportedCisco CEO Chuck Robbins said, “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.”US Top News and Analysis: “"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 .”
- SupportedCisco expects second-quarter revenue of $18 billion to $18.2 billion, above the $17.88 billion analyst estimate.US Top News and Analysis: “For the fiscal second quarter, Cisco said it expects revenue of between $18 billion and $18.2 billion, topping the average analyst estimate of $17.88 billion, according to LSEG.”
- SupportedCisco expects second-quarter adjusted earnings per share of $1.34 to $1.36, above the $1.23 estimate.US Top News and Analysis: “The company is projecting adjusted earnings per share of $1.34 to $1.36, beating the $1.23 average estimate.”
- SupportedCisco is trying to gain a foothold in the AI buildout after missing out on the early years of the generative AI boom.US Top News and Analysis: “Cisco is trying to gain a foothold in the artificial intelligence buildout after missing out on the early years of the generative AI boom.”
- SupportedCisco stock was up about 35% for the year as of Thursday’s close, while the Nasdaq had gained 9% over that period.US Top News and Analysis: “The company's stock price is up about 35% this year as of Thursday's close, trouncing the Nasdaq, which has gained 9% over that stretch.”
