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Cisco Lifts Outlook After Q1 Beat as AI-Fueled Networking Demand Rises

Accelerating hyperscaler orders underpin Cisco’s higher fiscal 2026 revenue targets.

Overview

  • Fiscal Q1 revenue came in at $14.88 billion with adjusted EPS of $1.00, topping LSEG estimates.
  • Cisco raised full-year guidance to $60.2–$61.0 billion in revenue and $4.08–$4.14 in adjusted EPS, and it forecast Q2 revenue of $15.0–$15.2 billion with EPS of $1.01–$1.03.
  • AI infrastructure demand accelerated with $1.3 billion in hyperscaler orders in the quarter, more than $2 billion in AI-related orders secured in fiscal 2025, and an expectation of $3 billion in AI revenue in fiscal 2026.
  • Product strength led results as total revenue grew 8% year over year, product revenue rose 10%, and Networking product revenue increased 15%.
  • Capital returns continued with a $0.41 quarterly dividend declared and about $2 billion of share repurchases, while shares climbed roughly 7% in after-hours and premarket trading and are up about 25% year to date.