Cisco Systems 2026 Q1 Earnings Strong Performance with 5.5% Net Income Growth

Cisco Systems (CSCO) reported fiscal 2026 Q1 earnings on Nov 18, 2025, with revenue rising 7.5% year-over-year and EPS increasing 5.9%. The results exceeded expectations, and full-year guidance aligns with current market conditions.

Revenue

Cisco’s total revenue reached $14.88 billion in Q1 2026, driven by robust performance across segments. Networking revenue led at $7.77 billion, while Total Product sales totaled $11.08 billion. Security and Services segments contributed $1.98 billion and $3.81 billion, respectively. Collaboration and Observability added $1.05 billion and $274 million, reflecting diversified growth.

Earnings/Net Income

Earnings per share (EPS) rose to $0.72, a 5.9% increase from $0.68 in Q1 2025. Net income grew by 5.5% to $2.86 billion, underscoring improved profitability despite macroeconomic challenges. The EPS growth indicates strong operational efficiency.

Price Action

CSCO’s stock price dipped 0.23% on the latest trading day but gained 7.89% weekly and 10.32% month-to-date. Post-earnings volatility highlights market optimism amid strategic initiatives.

Post-Earnings Price Action Review

A 30-day buy-and-hold strategy following a recent revenue miss showed potential, as insider sell-offs initially pressured the stock. However, confidence in long-term prospects—driven by AI infrastructure investments and dividend/buyback commitments—suggested a rebound. Market overreaction may have created a buying opportunity, though investors should monitor execution risks.

CEO Commentary

CEO Chuck Robbins emphasized resilience in navigating headwinds, highlighting AI and cybersecurity growth. Strategic investments in silicon and software-defined infrastructure aim to lead in the AI-driven era, with disciplined cost management supporting innovation.

Guidance

Cisco expects 2026 revenue to grow 4.5–5.5% YoY, with non-GAAP EPS of $3.25–$3.35. Capital expenditures will rise 8–10% to fund AI expansion, reflecting confidence in long-term innovation.

Additional News

1. Chairman Robbins

   sold $46.97 million of CSCO shares via a 10b5-1 plan, while President Patel and VP Stahlkopf sold $12.8 million each.

2. CFO Patterson

   filed to sell 68,916 shares, and VP Tuszik sold $416,508 worth of stock.

3. At Wells Fargo’s TMT Summit, Cisco outlined $4 billion in AI-related orders and $1 billion quarterly buybacks, emphasizing cybersecurity and public sector growth.

Cisco’s AI infrastructure and cybersecurity initiatives are central to its growth strategy, with hyperscaler partnerships and Splunk acquisition boosting long-term potential.