Cisco Q1 Earnings: Revenue Jumps 24% to $18.5B, Outlook Raised
Cisco reported Q1 fiscal 2027 revenue of $18.5 billion, up 24%, on Nov. 12, 2026. Networking sales rose 43% and it raised its full-year outlook.
Cisco Systems reported first-quarter fiscal 2027 revenue of $18.5 billion on Thursday, November 12, 2026, up 24% from a year earlier. The networking giant also raised its full-year outlook and lifted its target for AI infrastructure revenue from large cloud companies.
The quarter ended October 24, 2026. CEO Chuck Robbins said in the release that Cisco delivered "the strongest revenue and non-GAAP earnings per share growth rates for Cisco in over 15 years."
Cisco's Q1 by the numbers
Measure | Q1 FY2027 | Change vs. year ago |
|---|---|---|
Revenue | $18.52 billion | +24% |
Product revenue | $14.67 billion | +32% |
Services revenue | $3.85 billion | +1% |
GAAP earnings per share | $1.14 | +58% |
Adjusted (non-GAAP) EPS | $1.40 | +40% |
Non-GAAP gross margin | 65.6% | down from 68.1% |
Remaining performance obligations | $46.2 billion | +8% |
Source: Cisco earnings release, November 12, 2026.
Networking drives the growth
Networking, Cisco's biggest business, brought in $11.13 billion, up 43%. That is the gear, such as switches and routers, that connects data centers, including the ones built for artificial intelligence. Security revenue rose 7% to $2.12 billion, and collaboration grew 8%.
Growth was broad by region: the Americas rose 28%, Europe, the Middle East and Africa 18%, and Asia-Pacific, Japan and China 21%.
Cisco said it now expects about $9 billion of AI infrastructure revenue from hyperscalers (the largest cloud companies) in fiscal 2027. That is more than double its fiscal 2026 total, according to the release.
One soft spot: gross margin was lower than a year ago, at 65.6% on a non-GAAP basis versus 68.1%. Gross margin shows how much of each sales dollar is left after the cost of making the products.
New guidance
Period | Revenue | Adjusted EPS |
|---|---|---|
Q2 fiscal 2027 | $18.0B to $18.2B | $1.34 to $1.36 |
Full fiscal 2027 (raised) | $74.8B to $75.8B | $5.47 to $5.53 |
Source: Cisco.
Dividend and buybacks
Cisco bought back about 18 million shares for $2.0 billion in the quarter and returned a total of $3.7 billion to shareholders. It declared a quarterly dividend of $0.42 per share, payable January 20, 2027, to holders of record on January 4, 2027. It has $6.1 billion left under its buyback authorization.
What it means for investors
Cisco's results show that AI spending is reaching more than just chipmakers: the networks that link AI servers are growing fast too. Still, the company's guidance for Q2 revenue is a bit below what it just reported for Q1. New to earnings season? Our guide on how to read an earnings report explains terms like non-GAAP EPS, and our dividend calculator shows what a quarterly payout adds up to. For more on today's market, see our Nov. 12 market close.
This article is for information only and is not investment advice.
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