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Cisco Beats Estimates, Raises Full-Year Guidance

Cisco beat first-quarter estimates and lifted its full-year guidance, with lower-end forecasts for the next quarter and the year both above consensus. Shares were slightly higher after hours.

Cisco (NASDAQ: CSCO), the networking equipment maker, beat first-quarter estimates and raised its full-year guidance after the close today. Revenue rose 24% to $18.5bn versus the $18.13bn consensus, and adjusted earnings per share came in at $1.40 versus $1.33.

The shares closed today’s regular session up 1.2% at $102.01, before the 4.05pm New York release. In after-hours trading, they were up 0.4% at $102.44.

CSCO.US

Revenue for the quarter to the 24th of October compared with $14.9bn a year earlier. Networking sales rose 43% to $11.132bn.

Cisco also raised its expectation for AI infrastructure revenue from hyperscalers, the largest cloud operators, to $9bn in the 2027 financial year, more than double the 2026 total. Chief executive Chuck Robbins framed it as a long cycle:

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.

Chuck Robbins, chief executive, Cisco

Profit grew faster than sales. Adjusted operating margin rose to 37.8% from 34.4%, as adjusted costs rose only 2% to $5.1bn. The lower end of each guidance range sits above consensus:

MeasureCiscoConsensus
Q1 revenue$18.5bn$18.13bn
Q1 adjusted EPS$1.40$1.33
Q2 revenue guide$18.0-18.2bn$17.91bn
Q2 adjusted EPS guide$1.34-1.36$1.23
FY27 revenue guide$74.8-75.8bn$73.22bn
FY27 adjusted EPS guide$5.47-5.53$5.15

Not every line improved. Adjusted gross margin slipped to 65.6% from 68.1%, services revenue grew just 1%, and remaining performance obligations were $46.2bn, against $46.7bn at the end of July.

Cisco’s cautions include reliance on hyperscaler demand, supply constraints, and tariffs. It returned $3.7bn to shareholders in the quarter, and the $0.42 dividend is payable on 20 January to holders of record on 4 January. Management’s call is due at 9.30pm UK time.

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