Cisco Earnings Lift Fiscal-2027 Outlook
Cisco earnings beat Q1 with $18.5 billion revenue and $1.40 non-GAAP EPS and the company raised FY2027 guidance, boosting AI-infrastructure flows.
KEY TAKEAWAYS
- Cisco reported Q1 revenue of $18.5 billion and non-GAAP EPS of $1.40.
- Raised FY2027 revenue guide to $74.8 billion-$75.8 billion and non-GAAP EPS to $5.47-$5.53.
- Lifted hyperscaler AI infrastructure revenue forecast to $9.0 billion.
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Cisco Systems (CSCO) reported fiscal Q1 2027 revenue of $18.5 billion and non-GAAP earnings per share (EPS) of $1.40 in an earnings release dated Nov. 12, 2026. The results beat estimates, prompting the company to raise its fiscal 2027 revenue and EPS guidance as demand for AI infrastructure strengthened.
Strong Quarter Supports Raised Outlook
Cisco said its fiscal first-quarter results for the period ended Oct. 24, 2026 exceeded the high end of its guidance and topped cited analyst estimates. GAAP net income reached $4.6 billion, or $1.14 per diluted share, a 58% increase year over year. Non-GAAP net income was $5.6 billion, with EPS rising 40%. The company noted that non-GAAP figures exclude specified items and are reconciled in its published schedules.
Operating margins reflected the quarter’s strength, with GAAP operating margin at 30.2% and non-GAAP operating margin at 37.8%. Operating cash flow rose 36% to $4.4 billion. Product revenue grew 32% year over year, while services revenue was flat, increasing 1%. Cisco attributed the product growth to stronger orders for AI networking equipment.
The results surpassed available consensus estimates for revenue and adjusted EPS, reinforcing management’s decision to raise full-year targets.
AI Infrastructure Boosts Fiscal 2027 Guidance
Following the quarter, Cisco raised its fiscal 2027 revenue guidance to a range of $74.8 billion to $75.8 billion and its non-GAAP EPS guidance to $5.47 to $5.53. It also increased its forecast for hyperscaler AI infrastructure revenue to $9 billion. The company said, “The strength of our Q1 performance gives us confidence to raise our revenue and non-GAAP EPS guidance for FY27.”
For the second quarter, Cisco projected revenue between $18.0 billion and $18.2 billion, GAAP EPS of $1.07 to $1.09, and non-GAAP EPS of $1.34 to $1.36. It forecast non-GAAP gross margin of 65% to 66% and non-GAAP operating margin of 36% to 37%. Management attributed the higher full-year outlook to ongoing demand for AI networking equipment and cybersecurity tools.
The raised guidance midpoints exceed cited analyst estimates, highlighting the growing role of AI infrastructure revenue in Cisco’s fiscal 2027 outlook. The quarter’s revenue beat, margin expansion, and increased operating cash flow, combined with the larger hyperscaler AI revenue forecast, underpin management’s confidence in AI infrastructure as a key contributor to the company’s performance this fiscal year.
