Cisco (CSCO) Q1 2026 earnings report

Cisco It reported better-than-expected profit and revenue for its fiscal first quarter on Wednesday. The stock is up about 5% in extended trading.

Here’s how the company performed compared to consensus estimates from LSEG:

• Earnings per share: $1 adjusted, expected 98 cents

• Revenues: $14.88 billion etc. $14.77 billion is expected

Cisco said its revenue rose 8% from $13.84 billion in the same period a year ago. expression. Net income rose to $2.86 billion, or 72 cents per share, from $2.71 billion, or 68 cents per share, a year ago.

It was the fourth straight quarter of growth for Cisco after four straight years of year-over-year revenue declines as the company battled economic uncertainty and government agencies delayed spending.

Sales at Cisco’s networking business, its largest unit, rose 15% to $7.77 billion. Analysts were expecting revenue of $7.47 billion for the segment, according to StreetAccount.

As companies increase their investments in servers packed with graphics processing units, much of the growth in data center spending is focused on artificial intelligence. Nvidia. Cisco is trying to tie itself more closely to the AI ​​boom, and last month introduced A new Ethernet switch based on Nvidia silicon.

Cisco said AI infrastructure orders from “hyperscaler customers” reached $1.3 billion, “reflecting a significant acceleration in growth.”

“Our interest in artificial intelligence continues to grow,” CFO Mark Patterson said in the press release. “With strong demand for our renewed network products, our opportunity for a multi-year, multibillion-dollar campus renovation is beginning to grow.”

Cisco said it expects revenue of $15 billion to $15.2 billion in the fiscal second quarter, above the average forecast of $14.6 billion, according to LSEG. Adjusted earnings will range from $1.01 to $1.03 per share, topping the average estimate of 99 cents.

Cisco said revenue for the full fiscal year will be between $60.2 billion and $61 billion, with earnings per share of $4.08 to $4.14. Analysts expect sales of $59.7 billion and earnings per share of $4.04.

While networking grew and performed better than expected, Cisco’s other two major segments saw revenue declines and missed Wall Street’s expectations.

Sales at the company’s security unit fell 2% from a year earlier to $1.98 billion, missing the $2.16 billion average forecast, according to StreetAccount. Collaboration sales fell 3% to $1.06 billion, falling short of the average estimate of $1.09 billion.

Cisco shares are up 25% this year as of Wednesday’s close, outpacing the Nasdaq’s 21% gain.

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