Cisco Reports Strong Fiscal Q1 Results, Beats Expectations
Cisco reported better-than-expected profit and revenue for its fiscal first quarter on Wednesday, sending its stock higher in extended trading.
**Earnings and Revenue Beat Estimates**
The company posted adjusted earnings per share of $1.00, surpassing the consensus estimate of 98 cents, according to LSEG. Revenue came in at $14.88 billion, slightly above the expected $14.77 billion.
This represents an 8% increase from $13.84 billion in the same period a year earlier. Net income climbed to $2.86 billion, or 72 cents per share, up from $2.71 billion, or 68 cents per share, a year ago.
**Return to Growth Amid Challenges**
This marks Cisco’s fourth consecutive quarter of growth, following a period of four straight year-over-year revenue declines. The company had been navigating economic uncertainty and delayed spending from government agencies during that stretch.
Cisco’s largest unit, its networking business, delivered robust performance with sales rising 15% to $7.77 billion. Analysts had expected revenue of $7.47 billion for this segment, according to StreetAccount.
**Focus on Artificial Intelligence and Data Center Spending**
Much of the growth in data center spending is driven by investments in artificial intelligence. Companies are bolstering their server capacities with graphics processing units, predominantly from Nvidia.
Cisco is strategically aligning itself with the AI boom. Last month, the company introduced a new Ethernet switch based on Nvidia silicon, aiming to capitalize on increasing demand in this space.
**Outlook for Fiscal Q2**
Looking ahead to the fiscal second quarter, Cisco expects revenue between $15 billion and $15.2 billion, above the $14.6 billion average estimate from LSEG. Adjusted earnings per share are projected to range from $1.01 to $1.03, exceeding the consensus estimate of 99 cents.
**Stock Performance**
Cisco shares have risen 25% so far this year, outperforming the Nasdaq’s 21% gain as of Wednesday’s close.
Overall, Cisco’s strong performance and optimistic guidance reflect its successful navigation of recent challenges and its strategic positioning in the growing AI market.
https://www.cnbc.com/2025/11/12/cisco-csco-q1-2026-earnings-report.html
