Core Insights - Cisco reported quarterly results that narrowly exceeded analysts' expectations, with revenue increasing by 7.6% year over year and net income rising to $2.82 billion, or 71 cents per share, compared to $2.16 billion, or 54 cents per share, in the same quarter last year [1] Financial Performance - For the fiscal first quarter, Cisco management projected adjusted earnings per share between 97 cents to 99 cents on revenue of $14.65 billion to $14.85 billion, slightly above the LSEG consensus of 97 cents per share on $14.62 billion in revenue [2] - For the full fiscal year 2026, Cisco forecasts adjusted earnings per share of $4 to $4.06 and revenue between $59 billion to $60 billion, compared to the LSEG consensus of $4.03 per share and $59.53 billion in revenue [2] Segment Performance - In the fiscal fourth quarter, Cisco generated $7.63 billion in networking revenue, a 12% increase, surpassing the StreetAccount estimate of $7.34 billion [3] - Cisco's security revenue for the quarter was $1.95 billion, up 9%, but below the StreetAccount estimate of $2.11 billion [3] Strategic Initiatives - Cisco announced collaborations to invest in artificial intelligence infrastructure with partners including BlackRock and Microsoft, and joined a Stargate data center initiative involving OpenAI and SoftBank [4] - The company introduced new switches and routers designed to handle AI workloads [4] Market Performance - Cisco's AI infrastructure orders from webscale customers in fiscal 2025 exceeded the original target of $1 billion, with orders more than double that amount [5] - Cisco shares have increased by 19% in 2025, outperforming the S&P 500, which has gained about 10% [5]
Cisco reports narrow earnings beat, issues inline forecast for the year