Cisco delivered stronger-than-expected first-quarter results and raised its full-year guidance, pointing to accelerating demand for AI networking infrastructure. The company reported $18.5 billion in revenue for the quarter ending October 24, 2026, above the approximately $18.1 billion Wall Street had expected. GAAP net income reached $4.6 billion, or $1.14 per share, while non-GAAP net income came in at $5.6 billion, or $1.40 per share.
Management lifted its annual revenue outlook to between $74.8 billion and $75.8 billion, well above the previous ceiling of $73.4 billion. For the upcoming quarter, Cisco is guiding for about $18.1 billion in revenue, compared with analyst estimates of $17.8 billion. The company also raised its fiscal 2027 projection for hyperscaler AI infrastructure revenue from $7.5 billion to $9 billion, more than double the $4 billion generated a year earlier. Full-year non-GAAP earnings per share are now expected at $5.47 to $5.53, up from the prior forecast of $5.05 to $5.11.
Networking product orders increased 28% during the quarter, with double-digit growth across all product categories. Networking segment sales surged 43% year over year to $11.13 billion. Cisco also reported remaining performance obligations of $46.2 billion, up 8% from the prior year. CEO Chuck Robbins called the results the strongest revenue and non-GAAP EPS growth rates for Cisco in over 15 years, describing the early stages of a multi-year networking supercycle.
Despite the strong report, investor concerns remain around data center expansion after the Democratic midterm victory, potential regulatory scrutiny of advanced AI, higher borrowing costs, and rising memory chip prices. Analyst Bob O'Donnell of TECHnalysis Research said the better-than-expected results and improved financial forecasts are what investors expect from an AI infrastructure-related company.
