Cisco reported record quarterly revenue of $18.5 billion on Thursday, beating Wall Street expectations and raising its full-year forecast as demand for its artificial intelligence networking equipment accelerates.
The networking company said revenue for its fiscal first quarter, which ended October 24, rose 24% from a year earlier, topping analysts' average estimate of $18.14 billion, according to data compiled by LSEG. Adjusted earnings per share were $1.40, up 40% year over year and above the $1.33 consensus estimate compiled by FactSet.
On a generally accepted accounting principles basis, Cisco reported net income of $4.6 billion, or $1.14 per share, up 58% from a year earlier. Non-GAAP net income was $5.6 billion, or $1.40 per share, the company said in its earnings release.
Cisco raised its fiscal 2027 revenue forecast to between $74.8 billion and $75.8 billion, up from its previous range of $72.2 billion to $73.4 billion. The company also lifted its adjusted earnings outlook for the year to between $5.47 and $5.53 per share, from $5.05 to $5.11 previously. For the second quarter, Cisco guided to adjusted earnings of $1.34 to $1.36 per share.
The company said it now expects AI infrastructure revenue from hyperscalers — the largest cloud computing companies — to reach $9 billion in fiscal 2027, more than double last year's total. Cisco had previously forecast $7.5 billion, betting that spending on the networks that connect AI data centers will keep climbing.
The results capped an eventful day for Cisco and the broader technology sector, after Nvidia Chief Executive Jensen Huang resigned earlier on Thursday amid a scandal involving an alleged Chinese spy. Cisco shares moved in after-hours trading following the earnings release.
Cisco also declared a quarterly dividend of $0.42 per common share, to be paid on January 20, 2027, to stockholders of record as of the close of business on January 4, 2027.
The strong quarter underscores how the build-out of AI data centers is lifting demand well beyond chipmakers, with networking gear now one of the fastest-growing parts of the AI supply chain.
