Core Insights - Cisco Systems (CSCO) reported first-quarter fiscal 2026 non-GAAP earnings of $1 per share, exceeding the Zacks Consensus Estimate by 2.04% and reflecting a year-over-year increase of 9.9% [1] - Revenues reached $14.88 billion, surpassing the Zacks Consensus Estimate by 0.71%, with a year-over-year growth of 7.5% [2] Financial Performance - Total Annual Recurring Revenues (ARR) were $31.4 billion, up 5%, with product ARR growth of 7% [2] - Total subscription revenues amounted to $8 billion, representing 54% of Cisco's total revenues [2] - Total software revenue increased by 3% year over year to $5.7 billion [2] - Product revenues in Q1 were $11.08 billion, accounting for 74.4% of total revenues, with a year-over-year increase of 9.5% [5] - Service revenues were $3.81 billion, making up 25.6% of total revenues, and increased by 2.1% year over year [5] Segment Performance - Networking revenues were $7.77 billion, up 15% year over year [4] - Security revenues decreased by 2% to $1.98 billion [4] - Collaboration revenues fell by 3% to $1.06 billion [4] - Observability revenues increased by 6% to $274 million [4] Geographic Performance - Americas' revenues grew by 9% year over year to $8.99 billion [6] - EMEA revenues climbed by 5% year over year to $3.78 billion [6] - APJC revenues also increased by 5% year over year to $2.11 billion [6] Operating Metrics - Non-GAAP gross margin was 68.1%, expanding by 120 basis points year over year [7] - Non-GAAP operating income was $5.12 billion, reflecting an 8.4% year-over-year increase [8] - Operating margin improved by 30 basis points year over year to 34.4% [8] Balance Sheet and Cash Flow - As of October 25, 2025, cash and cash equivalents totaled $15.7 billion, down from $16.1 billion [9] - Total debt remained stable at $28.1 billion [9] - Cisco returned $3.6 billion to stockholders through share buybacks and dividends [10] Guidance - For Q2 fiscal 2026, Cisco expects non-GAAP earnings between $1.01 and $1.03 per share, with revenues projected between $15 billion and $15.2 billion [11] - For the full fiscal 2026, non-GAAP earnings are expected to be between $4.08 and $4.14 per share, with revenues anticipated between $60.2 billion and $61 billion [12]

Core Insights - Cisco has achieved a record quarter and is positioned for its best year ever, reflecting strong performance and customer confidence in its technology [1][2][19] Customer Engagement - The company is seeing significant spending from hyperscalers, which are advanced customers that conduct deep analyses before making technology decisions, indicating strong trust in Cisco's innovation [2][3] - New customer acquisitions include major hyperscalers in the U.S. and sovereign deals in the Middle East, with expansion into neo cloud markets in Europe and Southeast Asia [4][5] Financial Performance - Cisco reported $1.3 billion in business from top hyperscalers, with a focus on five key companies known for their strong cash flow [5] - The company has over $2 billion in its pipeline for neo cloud, sovereign cloud, and enterprise solutions, indicating a robust growth trajectory [6] Technology and Innovation - Cisco's technology evolution starts with hyperscalers, moving through telco spaces and into enterprise, showcasing a natural progression in technology adoption [7] - The company has made significant investments in software, particularly in security, and has seen growth in next-generation firewalls and Splunk products [10][12] Market Dynamics - The current market differs from 2000, as today's customers have strong financials and view technology investments as essential rather than optional [15][16] - There is a substantial opportunity for growth in AI and security, with the company open to both organic and inorganic strategies to enhance its offerings [14][18]

Market Overview - Major stock indices have experienced significant declines, with the Nasdaq down 417.09 points or 1.8 percent, the S&P 500 down 77.00 points or 1.1 percent, and the Dow down 351.82 points or 0.7 percent [2] - The Dow's pullback is attributed to a sharp decline in Disney's shares, which fell by 9.7 percent following the company's fiscal fourth quarter earnings report that exceeded analyst estimates but showed weaker-than-expected revenues [2] Sector Performance - Tech stocks are under pressure, with notable declines in Nvidia, Broadcom, and Alphabet, reflecting ongoing valuation concerns [3] - The NYSE Arca Computer Hardware Index dropped by 5.1 percent, while the Philadelphia Semiconductor Index fell by 3.5 percent, indicating substantial weakness in the semiconductor sector [4][5] - Networking stocks also declined, with the NYSE Arca Networking Index down by 3.0 percent despite positive earnings from Cisco Systems [5] - Other sectors such as brokerage, airline, and gold stocks have shown notable declines, while energy and pharmaceutical stocks have bucked the overall downtrend [5] Economic Context - The uncertainty in the market is compounded by the potential delay in the release of key U.S. economic reports due to the recent government shutdown, leaving traders and the Federal Reserve without critical data [4] - The yield on the benchmark ten-year treasury note has increased by 2.1 basis points to 4.100 percent, indicating a shift in the bond market following a previous rise [6] International Markets - In contrast to the U.S. market, stocks in the Asia-Pacific region mostly moved higher, with Japan's Nikkei 225 Index rising by 0.4 percent and China's Shanghai Composite Index advancing by 0.7 percent [5] - Major European markets, however, have declined, with the German DAX Index down by 1.2 percent, the U.K.'s FTSE 100 Index down by 1.0 percent, and the French CAC 40 Index down by 0.1 percent [6]

Financial Performance & AI Orders - Cisco achieved a record quarter with strong performance across geographies, technology areas, and customer segments [4] - Cisco secured $13 billion in AI infrastructure orders from hyperscalers, expecting to double last year's total of just over $2 billion in this area [2][3] Security Business & Accounting - Cisco acknowledges the need for faster progress in its security business [8] - Revenue recognition in security is affected by the shift from on-premise Splunk to cloud-based Splunk, with cloud deals recognized over the contract life [6] - Strong demand is seen in new firewalls and refreshed security products [7] AI & Partnerships - Cisco has a strong partnership with Nvidia, collaborating on AI infrastructure and developing an Ethernet switch with Nvidia's Spectrum X silicon, expected in the second half of the fiscal year [9] - Cisco is expanding its ecosystem partnerships, including collaborations with Middle East sovereign clouds like G42 and Humane [10] - Cisco views itself as a neutral ecosystem partner in the AI space [10] Market Perspective & Future Outlook - Cisco believes that the current AI investment boom is different from the 1999-2000 era, as it is driven by companies with strong balance sheets, cash flow, and profitability [12][13] - Cisco believes it is still early in the AI revolution, with significant potential in physical AI, robotics, and agentic technologies [13][14] - Cisco expresses confidence in the balance of the year, citing the acceleration of its teams' work and the uptake of its silicon strategy in the AI infrastructure space [20][21]

Core Insights - Cisco reported a strong quarter with significant growth driven by AI infrastructure orders, achieving $1.3 billion in AI orders from hyperscalers, which is expected to double compared to the previous fiscal year [3][4] - The company experienced a broad uptake in its campus refresh initiatives and strong performance across various geographical regions, technology areas, and customer segments [4] - Cisco's partnership with Nvidia has been fruitful, with plans to develop an Ethernet switch utilizing Nvidia's silicon, indicating a commitment to expanding its ecosystem partnerships [9][10] Financial Performance - Cisco's revenue from AI infrastructure orders reached $1.3 billion, a substantial increase from just over $2 billion in total AI orders last fiscal year, indicating a robust demand in the hyperscaler segment [3] - The company acknowledged challenges in its security division but noted strong demand for new firewall products and a positive outlook for future growth [6][7][8] Market Position and Strategy - Cisco's CEO emphasized that the current spending environment is driven by companies with strong balance sheets and profitability, contrasting it with the dot-com bubble era [12][13] - The company is focused on expanding its presence in the AI infrastructure space and is optimistic about the long-term potential of AI technologies, suggesting that the market is still in its early stages [14][20] - Cisco is actively engaging with various cloud providers, including partnerships with Middle Eastern sovereign clouds, to enhance its market position [10]

Government Shutdown and Economic Impact - The government shutdown has ended, but its impact on economic data is still a concern, particularly for October data which may not be released due to collection issues [3][6]. - The next significant date for government funding discussions is January 30th [3]. Market Trends and Sector Rotation - There is optimism in the market with a rotation from technology stocks into sectors like financials, healthcare, and materials [4]. - Consumer staples stocks, such as Walmart and Costco, may benefit from the reinstatement of Snap payments, potentially aiding their top-line growth [5]. Industrial Sector Performance - The industrial sector is experiencing a positive trend, with earnings surpassing expectations and a lower dollar boosting demand [9]. - Companies like Caterpillar are seeing increased sales due to artificial intelligence applications in data center construction [10]. Company Earnings Reports - Disney reported revenue of $22.46 billion, missing expectations of $22.75 billion, with a year-over-year revenue flatline and a 4% drop in premarket trading [14][15]. - Cisco's revenue reached $14.88 billion, exceeding expectations, with a significant 15% year-over-year increase in its networking segment driven by AI demand [18][19]. Market Outlook - The S&P 500 is expected to have a trading range between 6800 and 6905, with potential volatility indicated by out-of-the-money put activity [22][23]. - Nvidia's performance is highlighted as a potential market catalyst, particularly if it breaks below 190 [24].

Core Insights - Cisco Systems reported $14.88 billion in revenue for the quarter ended October 2025, marking a year-over-year increase of 7.5% and an EPS of $1.00 compared to $0.91 a year ago, exceeding the Zacks Consensus Estimate of $14.78 billion by 0.71% [1] Revenue Breakdown - Revenue from Networking products was $7.77 billion, surpassing the estimated $7.34 billion by analysts, reflecting a 15% increase year-over-year [4] - Revenue from Observability products was $274 million, slightly below the estimated $288.48 million, with a year-over-year increase of 6.2% [4] - Services revenue reached $3.81 billion, aligning closely with the $3.8 billion average estimate, representing a 2.1% year-over-year increase [4] - Security product revenue was $1.98 billion, falling short of the $2.24 billion estimate, indicating a year-over-year decline of 1.8% [4] - Total Product revenue was $11.08 billion, exceeding the $10.95 billion estimate, with a year-over-year growth of 9.5% [4] - Collaboration product revenue was $1.06 billion, below the $1.09 billion estimate, reflecting a year-over-year decrease of 2.8% [4] Gross Margin Insights - Non-GAAP Gross Margin for Services was reported at $2.69 billion, matching the average estimate [4] - Non-GAAP Gross Margin for Products was $7.45 billion, slightly above the estimated $7.38 billion [4] Stock Performance - Cisco shares returned +4.4% over the past month, compared to the Zacks S&P 500 composite's +4.6% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

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 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]

Encrypted Networking Solutions to Secure Critical Water, Gas and Electricity InfrastructureFREMONT, Calif, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Actelis Networks, Inc. (NASDAQ: ASNS) ("Actelis" or the "Company"), a market leader in cyber-hardened, rapid deployment networking solutions for IoT and broadband applications, today announced it has secured a new order from one of the largest regional utility companies in Central Germany to provide cyber-hardened, rapid deployment networking solutions for its distribu ...