Cisco Systems, Inc. is a well-known technology company that designs and manufactures networking equipment, software, and security tools. It was founded in 1984 and became famous for its routers, which enable computers to communicate. Over time, Cisco has expanded into areas like cybersecurity, cloud computing, and online collaboration tools such as Webex. The company is based in San Jose, California, and supports businesses, governments, and service providers worldwide.
Cisco is always working on new technology, including artificial intelligence, network security, and the Internet of Things (IoT). It stays ahead by buying other companies and investing in research. Also, Cisco cares about sustainability, working to reduce its environmental impact and promote digital access for people around the world.
Cisco Fiscal Q1 2026
Cisco (CSCO) reported beating results in the first quarter of the 2026 fiscal year. Revenue reached $14.9 billion, an 8% increase year over year.
Also, GAAP earnings per share were $0.72, up 6% year over year, while non-GAAP EPS came in at $1.00, up 10% year over year, both above the high end of guidance ranges and beat estimates.
Product orders grew across all geographies and customer markets, rising 13% year over year, with networking product orders achieving double-digit growth for the fifth consecutive quarter.
AI infrastructure orders from hyperscaler customers totaled $1.3 billion, reflecting significant acceleration.
Cisco also highlighted the start of a major multi-year, multi-billion-dollar campus networking refresh cycle, with all campus technologies, including switching, routing, wireless, and IoT, showing accelerated order growth. Next-generation solutions such as smart switches, secure routers, and WiFi 7 products are ramping faster than prior launches.
Highlights:
- Revenue: $14.9B, up 8% (Product +10%, Services +2%)
- Geographic revenue: Americas +9%, EMEA +5%, APJC +5%
- Product performance: Networking +15%, Observability +6%, Security –2%, Collaboration –3%
- Gross margin (Non-GAAP): 68.1% total, 67.2% product, 70.7% services
- Operating expenses: GAAP $6.4B (–6% YoY, 42.9% of revenue); Non-GAAP $5.0B (+3%, 33.7% of revenue)
- Operating income: GAAP $3.4B (Surged 43%, margin 22.6%); Non-GAAP $5.1B (Rose 8%, margin 34.4%)
- Tax provision: GAAP 15.7%, Non-GAAP 19%
- Net income: GAAP $2.9B (+5%), EPS $0.72 (Up 6%); Non-GAAP $4.0B (Rose 9%), EPS $1.00 (Increased 10%)
- Operating cash flow: $3.2B, down 12% YoY
- Cash & investments: $15.7B at quarter end, vs. $16.1B at FY2025 end
Cisco announced a quarterly dividend of $0.41 per share, payable on January 21, 2026, to shareholders recorded by January 2, 2026. Future dividends will depend on Board approval.
Outlook
For the second quarter of fiscal 2026, Cisco expects revenue to range between $15.0 billion and $15.2 billion, with GAAP earnings per share projected at $0.69 to $0.74 and non-GAAP earnings per share anticipated at $1.01 to $1.03.
For the full fiscal year 2026, the company forecasts revenue between $60.2 billion and $61.0 billion, with GAAP EPS in the range of $2.87 to $2.98 and non-GAAP EPS between $4.08 and $4.14.
Boards Statements
Chuck Robbins, Chair and CEO of Cisco, emphasized a strong start to fiscal 2026, noting that the company is on track for its best year yet. He highlighted the widespread demand for Cisco’s technologies, underscoring the importance of secure networking and the growing value of the company’s portfolio as customers accelerate adoption of AI.
CFO Mark Patterson reported that Cisco delivered a strong quarter, with both revenue and earnings surpassing guidance, alongside solid margins and operating cash flow. He pointed to Cisco’s increasing relevance in AI and the ramp-up of a multi-year, multi-billion-dollar campus refresh initiative, driven by strong demand for refreshed networking products. Patterson added that the company will remain focused on profitable growth, capital returns, and strategic investments to capture upcoming opportunities.
Impact on the Stock Market
Cisco’s stock (CSCO) jumped sharply following its Q1 FY2026 earnings release. In pre‑market trading, shares surged more than 7% as investors reacted positively to stronger‑than‑expected revenue, earnings, and guidance.
Cisco’s Q1 FY2026 earnings release had a strong impact on its stock, driving a sharp rally in pre‑market trading. The company beat expectations on both revenue and earnings, reported solid margins, and raised guidance, while highlighting accelerating demand for AI infrastructure and networking products.
Investors responded positively, pushing shares up more than 7% before the market opened, reflecting confidence in Cisco’s growth outlook and its positioning for one of its strongest years yet.
