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Cisco Reports Strong First Quarter Earnings

On November 12, 2025, Cisco Systems, Inc. released its first-quarter earnings report for FY 2026, revealing significant growth in its financial performance. This quarter, Cisco achieved revenues of $14.9 billion, reflecting an 8% year-over-year increase. The strong financial results exceeded the company's initial guidance and highlighted the sustained demand for its networking technologies.

Financial Highlights

• - GAAP Earnings Per Share (EPS): $0.72, a 6% increase from the previous year.
• - Non-GAAP EPS: $1.00, representing a 10% year-over-year increase.
• - GAAP Gross Margin: 65.5% and Non-GAAP Gross Margin: 68.1%. Both metrics were comfortably above the company's projections.

Cisco's leadership expressed enthusiasm about the results, with CEO Chuck Robbins acknowledging the impressive start to fiscal 2026. He noted that the robust demand for Cisco's technologies underlined the critical role secure networking plays as customers increasingly leverage AI to unlock new possibilities. Robbins stated, "The widespread demand for our technologies highlights the critical role of secure networking and the value of our portfolio."

Growth in Demand Across Sectors

The report indicated a substantial growth in product orders across various geographic regions and customer markets, with an overall 13% increase in product orders year-over-year. Notably, the Networking product orders achieved double-digit growth for the fifth consecutive quarter, underscoring the resilience and competitiveness of Cisco's offerings in a fast-evolving technological landscape.

Further emphasizing the company’s momentum, orders from hyperscaler customers in AI infrastructure reached $1.3 billion, marking a significant acceleration in growth. This is particularly relevant as a multi-year, multi-billion-dollar campus networking refresh cycle is currently underway, facilitating active demand in switching, routing, and IoT technologies. For Cisco's advanced products like smart switches and secure routers, the ramp-up has been notably faster compared to previous product introductions, indicating strong market acceptance.

Looking Ahead

Looking forward, Cisco's guidance for Q2 FY 2026 estimates revenues between $15.0 billion and $15.2 billion. The expected EPS is projected to be between $0.69 and $0.74 (GAAP), and $1.01 to $1.03 (Non-GAAP). Furthermore, for the entire fiscal year 2026, Cisco anticipates revenues in the range of $60.2 billion to $61.0 billion.

During the earnings call, CFO Mark Patterson elaborated on strategies to focus on profitable growth, capital returns, and strategic investments to seize the immense opportunities expected in the upcoming years. He highlighted that the relevance of Cisco's AI capabilities continues to build, which is crucial to overcoming future challenges and driving fundamental value for stakeholders.

Commitment to Shareholder Value

As part of its commitment to enhancing shareholder returns, Cisco has declared a quarterly dividend of $0.41 per common share to be distributed on January 21, 2026, to stockholders recorded by January 2, 2026. This action reinforces Cisco's strategy of capital allocation focused on returning value through dividends and share repurchases.

Conclusion

In summary, Cisco's strong first-quarter performance reflects both operational efficiencies and elevated market demand for advanced networking solutions. With an optimistic outlook for the remainder of the fiscal year, Cisco remains committed to innovating within the tech sector while enhancing its value proposition to shareholders in the AI era. With robust plans for new product launches and a clear vision for future growth, Cisco is set to solidify its position as a technology leader.