Financial Data and Key Metrics Changes - Cisco reported Q1 revenue of $14.9 billion, an 8% increase year-over-year, with non-GAAP net income rising to $4 billion, up 9% [16][18] - Non-GAAP earnings per share (EPS) reached $1, reflecting a 10% growth, indicating that earnings are growing faster than revenue [16][18] - Total annualized recurring revenue (ARR) was $31.4 billion, a 5% increase, with product ARR growing by 7% [18] Business Line Data and Key Metrics Changes - Total product revenue was $11.1 billion, up 10%, while service revenue increased by 2% to $3.8 billion [17] - Networking products saw a significant growth of 15%, driven by service provider routing and AI infrastructure [17] - Security revenue declined by 2%, attributed to shifts towards cloud subscriptions and declines in prior-generation products [17][19] Market Data and Key Metrics Changes - Product orders grew by 13% year-over-year, with service provider and cloud orders up 45% [18] - Orders from the public sector increased by 12%, while enterprise orders rose by 4% [18] - Geographic performance showed the Americas up 16%, EMEA up 8%, and APJC up 13% in product orders [18] Company Strategy and Development Direction - Cisco is focusing on AI infrastructure and secure networking as critical growth areas, with expectations of $3 billion in AI infrastructure revenue from hyperscalers in FY2026 [8][21] - The company is expanding partnerships, including with G42 and NVIDIA, to enhance its AI capabilities and product offerings [10][11] - Cisco aims to capitalize on the multi-year refresh opportunity in networking products as older models reach end-of-support [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI-related products and the need for modern networking infrastructure to support AI initiatives [5][6] - The company anticipates continued growth in the second half of FY2026, driven by strategic investments and innovation [20][21] - Management acknowledged challenges in the supply chain, particularly regarding memory and optics, but remains optimistic about meeting demand [27][54] Other Important Information - Cisco returned $3.6 billion to shareholders through dividends and share repurchases, representing 125% of free cash flow in Q1 [4][19] - The company reported a non-GAAP gross margin of 68.1%, slightly down from the previous year but above guidance [19] - Total cash, cash equivalents, and investments at the end of Q1 were $15.7 billion [19] Q&A Session Summary Question: Insights on AI orders and WebScale opportunities - Management clarified that the $3 billion AI revenue target for FY2026 is based on existing customer orders, with expectations for at least double the orders from FY2025 [22][23] Question: Growth in enterprise orders and pipeline - The NeoCloud and Sovereign Cloud enterprise pipeline exceeds $2 billion, with $200 million booked in Q1, indicating strong future potential [23][24] Question: Impact of DRAM pricing on gross margin - Management acknowledged tightening supply and price increases in memory and optics but stated these factors are accounted for in their guidance [27][28] Question: Multi-year cycles and product refresh opportunities - Management highlighted the accelerated ramp of new products, indicating strong customer interest in modernizing network infrastructure [30] Question: Security revenue and future growth expectations - Management reiterated commitment to mid-teens long-term growth in security revenue, expecting normalization of the mix shift to take about four quarters [51][52]

And right now we are 2 minutes away from the end of the trading day. Romaine Bostick here with Katie Greipel taking you through to that closing bell with a global simulcast. We're joined now by Carol Massar, Tim Stenovec in the radio booth.Welcome to our audiences across all of our bloomberg platforms. Carol Massar This is the second day in a row we've seen massive outperformance by the Dow Jones Industrial Averages. This will be the most we ever talk about the Dow Jones Industrial Average in days.Well, yes ...

Financial Performance - Cisco reported Q1 revenue of $14.88 billion, an 8% year-over-year increase, and a non-GAAP EPS of $1.00, up 10%, both exceeding Wall Street expectations [1][3] - The company has achieved revenue growth for four consecutive quarters [1] - GAAP gross margin was 65.5%, and non-GAAP operating margin was 34.4%, both above guidance ranges [3] Core Business Progress - AI infrastructure orders from hyperscale customers reached $1.3 billion, significantly up from $800 million in the previous quarter, indicating strong demand in the AI sector [3] - Product orders grew by 13% year-over-year, with network product orders achieving double-digit growth for the fifth consecutive quarter [3][4] - The networking business saw a revenue increase of 15% to $7.77 billion, surpassing analyst expectations [4] Strategic Development - Cisco launched a new Ethernet switch based on NVIDIA chips to enhance its competitive position against rivals [3] - The company is focusing on upgrading AI network equipment and has initiated a multi-year, multi-billion dollar upgrade cycle in campus networking [4] - Cisco plans to strengthen its software and security business through a $28 billion acquisition of Splunk, aiming for business diversification [3]

Core Viewpoint - Cisco's stock price continued to rise after hours, with the latest increase reaching 7.1% [1] Group 1 - Cisco's after-hours stock performance indicates strong market confidence [1]

每经AI快讯，11月13日，思科第一财季营收148.8亿美元，分析师预期147.7亿美元。第一财季产品收入 110.8亿美元，分析师预期109.7亿美元。第一财季服务营收38.1亿美元，分析师预期37.9亿美元。预计全 年营收602亿~610亿美元，公司原本预计590亿~600亿美元。预计全年调整后EPS为4.08~4.14美元，公司 原本预计4~4.06美元。预计第二财季营收150亿~152亿美元，分析师预期147.2亿美元。预计第二财季调 整后EPS为1.01~1.03美元，分析师预期0.99美元。 ...

Core Insights - The article highlights the strong demand for Cisco's AI networking equipment, which has contributed to positive financial results and optimistic future guidance for the company [1] - A significant refresh in Cisco's legacy business, estimated to be worth multiple billions of dollars, has also played a crucial role in driving these results [1] Summary by Categories Company Performance - Cisco reported upbeat results driven by surging demand for its AI networking products [1] - The company is experiencing a multi-billion-dollar refresh in its legacy business, which is expected to further enhance its financial performance [1] Industry Trends - The increasing demand for AI networking solutions indicates a broader trend in the technology sector towards integrating artificial intelligence into networking infrastructure [1] - The legacy business refresh suggests that companies in the industry are focusing on modernizing their offerings to remain competitive in a rapidly evolving market [1]

Financial Performance - Q1 FY2026 revenue reached $14883 million, up 8% year-over-year[9, 26, 32, 33] - Non-GAAP EPS was $1.00, a 10% increase year-over-year[9] - Non-GAAP gross margin was 68.1%[9] - Non-GAAP operating margin was 34.4%[9] AI Momentum - Cisco secured $1300 million in AI infrastructure orders from hyperscale customers in Q1 FY26[6, 9, 18] - AI orders of over $200 million were taken from neocloud, sovereign, and enterprise customers in Q1 FY26[6, 18] - The company anticipates over $3000 million in AI infrastructure revenues in FY26[6, 12] - The AI opportunities pipeline is growing, exceeding $2000 million across neocloud, sovereign, and enterprise customers[9, 15] Recurring Revenue - Total RPO increased by 7% year-over-year to $42900 million, with product RPO up 10% year-over-year[9, 27] - Total ARR grew by 5% year-over-year to $31400 million, with product ARR up 7% year-over-year[9, 27] Capital Allocation - Cisco returned $3600 million to shareholders in Q1 FY26, including $2001 million in share repurchases[9, 35]

Chief Executive Chuck Robbins said Cisco is on track for its strongest year yet after a solid start to the fiscal year due to strong artificial intelligence-driven demand. ...

Core Insights - Cisco reported better-than-expected profit and revenue for its fiscal first quarter, with a revenue increase of 8% to $14.88 billion and net income rising to $2.86 billion, or 72 cents per share [1][5] - This marks the fourth consecutive quarter of growth for Cisco after a period of revenue declines, driven by a strong performance in its networking business, which saw a 15% increase in sales [2] Financial Performance - Revenue for the fiscal first quarter was $14.88 billion, exceeding the expected $14.77 billion, while adjusted earnings per share were $1.00 compared to the expected 98 cents [5] - For the fiscal second quarter, Cisco anticipates revenue between $15 billion and $15.2 billion, surpassing the average estimate of $14.6 billion, with adjusted earnings projected at $1.01 to $1.03 per share [3] - Full fiscal year revenue is expected to be between $60.2 billion and $61 billion, with earnings per share forecasted at $4.08 to $4.14, compared to analyst expectations of $59.7 billion and $4.04 EPS [4] Business Segments - The networking business, Cisco's largest unit, reported a 15% sales increase to $7.77 billion, outperforming the expected $7.47 billion [2] - However, the security unit experienced a 2% revenue decline to $1.98 billion, missing the average estimate of $2.16 billion, and collaboration sales fell 3% to $1.06 billion, below the expected $1.09 billion [4][5] Market Trends - Growth in data center spending is primarily driven by artificial intelligence investments, with Cisco reporting $1.3 billion in AI infrastructure orders from hyperscaler customers, indicating significant growth acceleration [3] - Cisco is positioning itself to capitalize on the AI boom, having recently introduced a new Ethernet switch based on Nvidia silicon [3]

Financial Performance - Q1 FY 2026 revenue reached $14.9 billion, an 8% increase year over year, with product revenue up 10% and services revenue up 2%[5] - GAAP EPS was $0.72, a 6% increase year over year, while Non-GAAP EPS was $1.00, up 10% year over year[6] - For the three months ended October 25, 2025, total revenue was $9.745 billion, a 6% increase year-over-year from $9.121 billion[54] - Non-GAAP net income for the same period was $4.011 billion, reflecting a 9% increase from $3.671 billion year-over-year[54] - Net income for the three months ended October 25, 2025, was $2.86 billion, an increase of 5.5% compared to $2.71 billion for the same period in 2024[40] Guidance and Projections - Cisco's Q2 FY 2026 guidance estimates revenue between $15.0 billion and $15.2 billion, with GAAP EPS projected at $0.69 to $0.74[23][24] - For FY 2026, Cisco projects revenue between $60.2 billion and $61.0 billion, with GAAP EPS expected to be between $2.87 and $2.98[25][26] - The company expects Q2 FY 2026 GAAP earnings per share to be between $0.69 and $0.74, with non-GAAP EPS projected between $1.01 and $1.03[59] Orders and Backlog - Product orders increased by 13% year over year, with double-digit growth in Networking product orders for the fifth consecutive quarter[5] - AI Infrastructure orders from hyperscaler customers totaled $1.3 billion, indicating significant growth acceleration[5] - Remaining Performance Obligations (RPO) totaled $42.9 billion, a 7% increase, with product RPO up 10%[19] - Total remaining performance obligations (RPO) reached $42.87 billion, reflecting a year-over-year growth of 7% from $39.99 billion[42] - Long-term product RPO was $11.8 billion, reflecting a 13% increase year-over-year[42] Cash Flow and Returns - The company returned $3.6 billion to stockholders in Q1 FY 2026 through share buybacks and dividends, including a cash dividend of $0.41 per share[21] - Cash flows from operating activities amounted to $3.21 billion, down from $3.66 billion in the prior year, indicating a decrease of 12.3%[40] - The company repurchased $2.00 billion worth of common stock during the quarter, with a weighted average price of $68.28 per share[46] Assets and Liabilities - Total cash and cash equivalents at the end of Q1 FY 2026 were $15.7 billion, down from $16.1 billion at the end of FY 2025[19] - Total assets decreased to $121.1 billion as of October 25, 2025, down from $122.3 billion on July 26, 2025, representing a decline of 1%[38] - Total liabilities decreased to $74.23 billion, down from $75.45 billion, a reduction of 1.6%[38] Profitability Metrics - GAAP gross margin was 65.5%, while non-GAAP gross margin was 68.1%, indicating a slight improvement in profitability[54] - The company reported a gross margin of 68.9% for its services segment, indicating strong performance in that area[54] - The effective tax rate for GAAP was 15.7%, compared to a negative 19.6% in the prior year, with a non-GAAP effective tax rate remaining stable at 19.0%[57] Operating Expenses - Cisco's operating expenses for the three months ended October 25, 2025, were $6.382 billion, a decrease from $6.763 billion in the prior year[54] Strategic Initiatives - Cisco closed the acquisition of Aura Asset Intelligence, enhancing its asset and risk intelligence capabilities[22] - The company is focused on capital returns and strategic investments to capture significant opportunities in the AI sector[61]