Cisco Systems 2026 Q1 Earnings Beats Estimates with 5.5% Net Income Growth

Cisco Systems (CSCO) reported fiscal 2026 Q1 earnings on Nov 12, 2025, surpassing revenue and EPS expectations. The company raised its full-year guidance, signaling confidence in sustained demand for AI infrastructure and networking solutions.

Revenue

Cisco’s total revenue rose 7.5% year-over-year to $14.88 billion, driven by robust performance across core segments. The Networking division led with $7.77 billion, while Security and Collaboration contributed $1.98 billion and $1.05 billion, respectively. Product revenue, bolstered by AI infrastructure and campus networking demand, totaled $11.08 billion, marking a 10% YoY increase. Services revenue reached $3.81 billion, rounding out the diversified growth.

Earnings/Net Income

Earnings per share (EPS) increased to $0.72 from $0.68, a 5.9% rise, while net income grew 5.5% to $2.86 billion. The company’s profitability strengthened, reflecting disciplined cost management and operational efficiency.

Price Action

Post-earnings, CSCO’s stock surged 9.64% month-to-date, with gains of 2.86% on the latest trading day and 2.58% for the week. The upward momentum aligns with positive guidance and AI-driven demand.

Post-Earnings Price Action Review

CEO Commentary

CEO Charles Robbins highlighted exceeding high-end guidance, fueled by AI infrastructure, hyperscaler demand, and campus networking. He emphasized $3.6 billion in shareholder returns and strategic investments in AI-native technologies, while noting challenges in security revenue normalization.

Guidance

Cisco raised Q2 2026 revenue guidance to $15.0–$15.2 billion and full-year revenue to $60.2–$61 billion. Non-GAAP EPS guidance of $4.08–$4.14 for FY26 reflects confidence in margin leverage and AI momentum.

Additional News

Cisco declared a $0.41 quarterly dividend ($1.64 annualized), maintaining its 2.2% yield. The company also announced $3.6 billion in shareholder returns, including $2 billion in buybacks and $1.6 billion in dividends. Additionally, Cisco targets $3 billion in AI infrastructure revenue for FY26, citing hyperscaler momentum and multiyear campus refresh cycles.

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