Cisco Systems 2026 Q1 Earnings Strong Performance as Net Income Rises 5.5%

Cisco Systems (CSCO) reported fiscal 2026 Q1 earnings on Nov 18, 2025, with revenue rising 7.5% to $14.88 billion and EPS increasing 5.9% to $0.72, outperforming expectations. The company’s strategic focus on AI networking, cybersecurity, and infrastructure growth was highlighted during its participation in Wells Fargo’s TMT Summit.

Revenue

Cisco’s total revenue surged to $14.88 billion in Q1 2026, driven by robust performance across key segments. Networking led with $7.77 billion in revenue, while Security and Collaboration contributed $1.98 billion and $1.05 billion, respectively. Observability added $274 million, and Services rounded out the portfolio with $3.81 billion in revenue. The Total Product segment accounted for $11.08 billion of the total, underscoring the company’s strength in hardware and software solutions.

Earnings/Net Income

The company’s net income grew 5.5% year-over-year to $2.86 billion, with EPS rising to $0.72. This reflects sustained profitability and operational efficiency, indicating continued earnings growth and improved profitability.

Price Action

CSCO’s stock price edged down 0.23% in the latest trading day but gained 7.89% over the past week and 10.32% month-to-date, signaling mixed short-term investor sentiment.

Post-Earnings Price Action Review

The historical strategy of buying CSCO following revenue misses has underperformed, with an average 30-day gain of -2.1%, lagging the S&P 500’s 1.4% benchmark. This suggests a negative market reaction to earnings shortfalls, as investors adjust expectations and reduce holdings.

CEO Commentary

While the official earnings call details are unavailable, the reported metrics suggest a positive outlook. The CEO likely emphasized growth in AI infrastructure, cybersecurity, and government contracts. Strategic priorities may include scaling Splunk integration, addressing supply chain challenges, and maintaining shareholder returns through $1 billion quarterly buybacks. Leadership appears confident in long-term opportunities, including campus infrastructure upgrades and hyperscaler partnerships.

Guidance

No explicit forward-looking guidance was provided in the available data. The focus remains on executing current strategies and capitalizing on AI and cybersecurity trends.

Additional News

1. M&A Activity: Cisco’s $3 billion Splunk acquisition is expected to bolster cybersecurity growth, with double-digit revenue growth in product ARR and RPO.

2. C-Level Sales: Multiple executives, including President Jeetendra Patel and Chairman Charles Robbins, sold shares under prearranged plans, totaling $60 million.

3. Buyback Commitment: The company reaffirmed its $1 billion quarterly buyback target, signaling confidence in capital allocation.