Cisco earnings: strong AI infrastructure demand prompts raised annual revenue outlook

On Thursday after the close, November 12, 2026 (US Eastern Time), networking equipment vendor Cisco released its fiscal 2027 first-quarter results, covering the period through October 24, 2026. Quarterly revenue reached $18 billion, up 24% year over year and ahead of the $18.1 billion consensus estimate compiled by LSEG, compared with $14.88 billion in the prior-year period. Adjusted EPS came in at $1.40 versus the $1.33 expected, while net income totaled $4.6 billion against $2.9 billion a year earlier. On the strength of that performance, Cisco raised its full fiscal 2027 revenue and non-GAAP EPS guidance.

Revenue growth was concentrated in the product segment, where sales of $14.67 billion climbed 32%, while services revenue increased only 1%. Within products, networking posted $11.13 billion, a 43% gain, and security contributed $2.12 billion. The results also signal that Cisco is moving faster into the AI infrastructure value chain and has set a target of doubling its cloud-provider AI business in fiscal 2027. Relative to companies such as Nvidia and Broadcom, Cisco was not a prominent name in early generative AI market discussions.

Cisco shares initially jumped more than 8% in after-hours trading on Thursday, but the rally did not hold, and by the time of publication the gain had been fully erased. Year to date, the stock has gained roughly 35%, far outpacing the Nasdaq's approximately 9% rise over the same stretch. At this point, Cisco has disclosed the quarterly results, the upward revision to full-year guidance, and its doubled cloud-provider AI target, but no further details on how that AI goal will be pursued have been released.