TLDR
- Cisco (CSCO) stock was flat after hours even after a first-quarter beat.
- Revenue jumped 24% to $18.52 billion, with adjusted earnings of $1.40 a share.
- Fiscal 2027 revenue guidance now sits at $74.8 billion-$75.8 billion.
- AI hyperscaler revenue is now seen at $9 billion, up from $7.5 billion.
- Adjusted gross margin slid to 65.6% from 68.1% a year ago.
Cisco (CSCO) stock went nowhere in volatile after-hours trading on Thursday. The company had just beaten first-quarter estimates and lifted its yearly forecast.
The stock closed the regular session up 1.24%. It is up about 32% so far this year.
Revenue jumped 24% to $18.52 billion. Analysts were looking for about $18.1 billion, according to LSEG.
CISCO $CSCO Q1’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $18.5B (Est. $18.13B) 🟢; +24% YoY
🔹 Non-GAAP EPS: $1.40 (Est. $1.33) 🟢; +40% YoY
🔹 Non-GAAP Gross Margin: 65.6% (Est. 65.5%) 🟡
🔹 Non-GAAP Oper Income: $7.0B (Est. $6.57B) 🟢; +37% YoYRaises FY27 Guide:
🔹 Revenue:… pic.twitter.com/IKvu3pICNF— Wall St Engine (@wallstengine) November 12, 2026
Adjusted earnings hit $1.40 a share. The Street wanted $1.33.
On a GAAP basis, net profit was $4.55 billion, or $1.14 a share. A year ago, it was $2.86 billion, or 72 cents.
Guidance Takes a Big Step Up
Cisco now sees fiscal 2027 revenue of $74.8 billion to $75.8 billion. That tops its old range of $72.2 billion to $73.4 billion.
Adjusted earnings are now pegged at $5.47 to $5.53 a share. The prior range was $5.05 to $5.11.
AI infrastructure sales to hyperscalers should reach $9 billion. That is up from a $7.5 billion forecast and more than double the $4 billion from a year earlier.
Product revenue rose 32%. Services revenue edged up 1%, and every region grew.
CEO Chuck Robbins called this the “very early stages of a multi-year networking supercycle.” Big words to go with big numbers.
Margins Take the Hit
Adjusted gross margin came in at 65.6%, in line with estimates. A year ago it was 68.1%.
Blame the memory chips. A shortage has pushed up component costs, and suppliers are favoring AI data-center customers.
Bob O’Donnell of TECHnalysis Research called the dip no major concern. He said the raised forecast is what the market wants to see from an AI infrastructure name.
Cisco is also building software that lets businesses create their own AI agents. These bots help guard IT systems against cyber threats.
Investors had fretted over a data-center slowdown after the Democratic midterm win and rising borrowing costs.
For the second quarter, Cisco guided for revenue of $18 billion to $18.2 billion. Adjusted earnings are seen at $1.34 to $1.36 a share, versus the $1.23 analysts expect.
