CNBC·2025-11-12 21:26Core 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]