Cisco reports $18.5 billion in first-quarter revenue

Cisco has reported first-quarter revenue of $18.5 billion for the period ended October 24, up 24 percent from a year earlier. GAAP earnings were $1.14 a share, and non-GAAP earnings were $1.40 a share.

Profit grew faster than sales. GAAP net income was $4.6 billion, up 59 percent from $2.9 billion a year earlier. Non-GAAP net income was $5.6 billion, or $1.40 a share, up 40 percent from $1.00. GAAP operating margin was 30.2 percent, and the non-GAAP figure was 37.8 percent.

GAAP gross margin was 63.7 percent, down from 65.5 percent a year earlier. GAAP operating expenses were $6.2 billion, down 3 percent, and equaled 33.4 percent of revenue.

Networking led the product gain. Product revenue rose 32 percent, while services revenue rose 1 percent. Networking grew 43 percent, security 7 percent, collaboration 8 percent, and observability 2 percent. The Americas rose 28 percent, EMEA 18 percent, and APJC 21 percent.

Cisco lifted its hyperscaler AI outlook to $9 billion. The company raised its fiscal 2027 expectation for AI infrastructure revenue from hyperscalers to $9 billion, more than twice the fiscal 2026 total. Chair and chief executive Chuck Robbins said, "In Q1, we delivered the strongest revenue and non-GAAP earnings per share growth rates for Cisco in over 15 years."

Full-year guidance moved higher. Cisco now expects fiscal 2027 revenue of $74.8 billion to $75.8 billion. GAAP earnings guidance is $4.38 to $4.44 a share, and non-GAAP guidance is $5.47 to $5.53. For the second quarter, the company expects revenue of $18.0 billion to $18.2 billion.

The dividend stays at $0.42 a share. The payout is set for January 20, 2027, to holders of record on January 4, 2027. Future dividends remain subject to board approval. Second-quarter GAAP earnings guidance is $1.07 to $1.09 a share, and non-GAAP guidance is $1.34 to $1.36.