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]

Core Insights - Cisco reported better-than-expected profit and revenue for its fiscal first quarter, with revenue increasing 8% to $14.88 billion and net income rising to $2.86 billion, or 72 cents per share [1][4] - This marks the fourth consecutive quarter of growth for Cisco after a period of four consecutive year-over-year revenue declines [2] - The company's networking business, its largest unit, experienced a 15% sales increase to $7.77 billion, surpassing analyst expectations [2] Financial Performance - Revenue for the fiscal first quarter was $14.88 billion, compared to $13.84 billion in the same period a year earlier, reflecting an 8% increase [1] - Net income rose to $2.86 billion from $2.71 billion year-over-year, translating to earnings of 72 cents per share, up from 68 cents [1] - For the fiscal second quarter, Cisco anticipates revenue between $15 billion and $15.2 billion, exceeding the average estimate of $14.6 billion [4] Market Trends - Growth in data center spending is primarily driven by artificial intelligence investments, with companies focusing on servers equipped with graphics processing units, mainly from Nvidia [3] - Cisco is aligning itself with the AI trend, having recently introduced a new Ethernet switch based on Nvidia silicon [3] Stock Performance - Cisco shares have increased by 25% this year, outperforming the Nasdaq's 21% gain [4]

Core Insights - Cisco Systems has raised its annual revenue forecast, indicating confidence in future growth driven by demand for networking equipment due to multi-billion-dollar data center expansions [1] Company Summary - Cisco Systems is anticipating increased demand for its networking equipment as a result of significant investments in data center expansions [1]

Core Insights - Cisco is expected to report earnings with an EPS of 98 cents per share and revenue nearing $15 billion, with a focus on AI infrastructure growth, as UBS anticipates $2 billion in AI-related orders this year [1][5]. Company Performance - Cisco shares have increased over 20% in 2025, outperforming the broader tech sector, which has seen a 24.3% increase, and the S&P 500, which is up 14% [2][3][4]. - In the networking space, Cisco and Arista Networks are highlighted as standout performers, while other companies like HP Enterprise, Palo Alto Networks, and Fortinet are also noted players [4]. Earnings Expectations - Key metrics to watch in Cisco's earnings report include the strength of AI infrastructure demand reflected in network revenue and any new AI and cybersecurity products introduced [5]. - UBS upgraded Cisco's price target from $74 to $88, changing its rating from hold to buy, indicating positive sentiment from analysts [6]. Technical Analysis - Cisco's stock has risen over 8% in the past month, establishing a broad upward channel with significant support levels around 66 and 70-71 [7][8]. - The 21-day exponential moving average aligns with the trend line near 71.50, while the 63-day EMA is just below 70, indicating potential downside areas to monitor [9][10]. Options Activity - Options activity has been elevated, with approximately 255,000 total options traded, of which 73% are calls, suggesting bullish sentiment ahead of earnings [10]. - A notable trade involved a closing position on March 20th, 72.5 strike calls, indicating strategic positioning by traders [12][13].

Core Viewpoint - Cisco Systems is expected to report its fiscal first-quarter earnings, with a focus on whether the company will continue to benefit from increasing demand in the networking sector [1] Group 1 - Cisco Systems is set to release its earnings report after the market closes on Wednesday [1] - Investors are closely monitoring the company's performance in light of surging demand for networking solutions [1]

Core Viewpoint - Cisco is expected to report earnings that align with market expectations, particularly in the AI and networking sectors, with a focus on guidance exceeding current consensus [3][4][10]. Financial Performance - Cisco's stock has increased over 20% this year, trading near 25-year highs, with an all-time high of $82 reached in March 1999 [1][12]. - The consensus for Q2 total revenue is projected at $6 billion, reflecting a growth of 14.6%, with networking revenue expected to be $2 billion, showing a growth of 7.2% [3][4]. Market Expectations - Investors are looking for guidance that surpasses the consensus numbers, particularly in networking and security, as Cisco aims to differentiate itself through integrated security solutions [4][10][11]. - The company needs to demonstrate growth in AI networking revenue, which currently represents a small portion of its total revenue, estimated at around $1 billion from over $50 billion [6][10]. Competitive Landscape - Cisco faces significant competition from Nvidia and Arista Networks, which are trading at higher price multiples, necessitating Cisco to enhance its AI networking offerings [6][8]. - The transition of enterprises towards AI presents an opportunity for Cisco to leverage its position in the market, but competition remains a critical concern [8][10].

Cisco Systems, Inc. (NASDAQ:CSCO) will release earnings results for the first quarter, after the closing bell on Wednesday, Nov. 12.Analysts expect the tech company to report quarterly earnings at 98 cents per share, up from 91 cents per share in the year-ago period. The consensus estimate for Cisco’s quarterly revenue is $14.78 billion, compared to $13.84 billion a year earlier, according to data from Benzinga Pro.The company has beaten analyst estimates for revenue in eight of the last 10 quarters, includ ...

Core Insights - Cisco is focusing on upskilling its existing workforce rather than reducing staff, contrasting with other tech companies like Amazon and Microsoft that have laid off employees [1][2] - The company is providing its developers with access to AI coding tools, resulting in a significant increase in AI-generated code, which has risen from 4% to nearly 25% in the past year [2] - Cisco's leadership encourages AI learning among employees, as those whose managers utilize AI are more likely to adopt it themselves [3] Workforce Strategy - CEO Chuck Robbins emphasizes the importance of retaining engineers and enhancing their productivity through AI tools [2] - The hiring process is evolving, with a focus on relevant coding and engineering skills, particularly in AI, machine learning, and data science [5] - Cisco is open to hiring entry-level talent without degrees, as demonstrated skills through coursework or projects are often sufficient [6] AI Adoption and Training - Cisco's internal culture promotes the use of AI tools, with expectations for employees to engage with available AI resources [4] - The company views AI adoption as a competitive differentiator in the talent market, despite a general slowdown in hiring across the tech industry [4][5] - Knowledge of responsible AI practices, ethics, and explainability is becoming increasingly important in the hiring process [5]