Cisco Systems 2026 Q1 Earnings Net Income Surges 5.5% Amid Revenue Growth

Cisco Systems (CSCO) reported fiscal 2026 Q1 earnings on November 18, 2025, with total revenue rising 7.5% year-over-year to $14.88 billion, surpassing expectations. The company’s profitability strengthened, reflecting disciplined cost management and strategic investments in high-growth areas.

Revenue

Cisco’s Q1 revenue growth was driven by robust performance across core and emerging segments. Networking revenue reached $7.77 billion, while security and observability saw gains of $1.98 billion and $274 million, respectively. Collaboration and services contributed $1.05 billion and $3.81 billion, underscoring the company’s diversified revenue streams.

Earnings/Net Income

Earnings per share (EPS) increased 5.9% to $0.72, with net income climbing 5.5% to $2.86 billion. The results highlight Cisco’s ability to balance top-line growth with margin expansion, supported by operational efficiency and strategic pricing.

Price Action

The stock edged down 0.23% in the latest session but gained 7.89% weekly and 10.32% month-to-date, reflecting renewed investor confidence post-earnings.

Post-Earnings Price Action Review

A post-revenue-miss buy-and-hold strategy for CSCO has shown potential, despite initial insider sell-offs by executives including CFO Patterson and President Patel. The stock rebounded amid improved logistics and AI-driven growth prospects. Insider confidence in long-term fundamentals, coupled with sustained buybacks and dividend support, suggests a possible market overcorrection. A 30-day holding period could capitalize on a rebound, though investors should remain cautious of near-term volatility.

CEO Commentary

Cisco’s CEO emphasized resilience in Q1, stating, “Our focus on AI infrastructure and cybersecurity has delivered strong results, with hyperscaler orders exceeding $1 billion. We remain committed to innovation and shareholder returns, targeting $1 billion in quarterly buybacks.” Strategic priorities include scaling AI networking solutions and leveraging the Splunk acquisition to strengthen cybersecurity capabilities.

Guidance

While explicit forward-looking revenue or EPS targets were not provided, the CEO highlighted confidence in sustained growth across AI infrastructure and public sector markets. The company reiterated its commitment to returning $1 billion in capital to shareholders through buybacks.

Additional News

1. M&A Activity: Cisco’s $3 billion Splunk acquisition is expected to bolster cybersecurity offerings, with product revenue growth rates accelerating post-merger.

2. Executive Transactions: Chairman Robbins and President Patel executed prearranged sales totaling $47 million and $12.8 million, respectively, under SEC-compliant trading plans.

3. Capital Return: At Wells Fargo’s TMT Summit, Cisco reiterated its $1 billion-per-quarter buyback target, underscoring confidence in cash flow resilience despite macroeconomic headwinds.