Companies /Technology

Cisco Systems Inc

NASDAQ: CSCO Communication Equipment
$112.13
▲ $4.69 (+4.37%) today
Markets closed · 12:22am ET

Q1 2026 Earnings

Reported Nov 12, 2025, 4:15pm ET · SEC source
$1.00
Beat +1.86%
EPS · est. $0.98
$14.9B
Beat +0.72%
Revenue · est. $14.8B
+6.2%
Beating market
CSCO vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0+3%Nov 12Nov 13report 4:15pm ETearnings−1.6%−0.1%
−6%−3%0+3%Nov 12Nov 13earnings−1.6%−0.1%
CSCO −0.1%S&P 500 −1.6%
−6%−3%0+3%Nov 12Nov 13report 4:15pm ETearnings−2.1%−0.1%
−6%−3%0+3%Nov 12Nov 13earnings−2.1%−0.1%
CSCO −0.1%NASDAQ −2.1%
−9%−6%−3%0Nov 11Nov 20report 4:15pm ETearnings−4.5%−4.7%
−9%−6%−3%0Nov 11Nov 20earnings−4.5%−4.7%
CSCO −4.7%S&P 500 −4.5%
−9%−6%−3%0Nov 11Nov 20report 4:15pm ETearnings−5.9%−4.7%
−9%−6%−3%0Nov 11Nov 20earnings−5.9%−4.7%
CSCO −4.7%NASDAQ −5.9%
+3.14%
Day of report
+4.62%
Next session
+5.99%
One week
+5.80%
30 days

S&P 500 over the same 30 days: −0.39%.

Did CSCO Beat Earnings? Q1 2026 Results

Cisco Systems posted a clean beat on both lines in <a href="https://247wallst.com/investing/2025/11/12/live-cisco-systems-csco-1st-quarter-earnings-coverage/">its fiscal first quarter</a>, with non-GAAP EPS of $1.00 topping the $0.98 consensus estimate by 1.86% and revenue of $14.88 billion edging past expectations by 0.72% on 7.5% year-over-year growth. The standout driver was Networking, which surged 15% to $7.77 billion as a multi-year campus refresh cycle gained momentum across switching, routing, wireless, and IoT, while AI infrastructure orders from hyperscaler customers hit $1.30 billion, signaling what management called a meaningful acceleration. GAAP operating margin expanded sharply to 22.6% from 17.0% a year ago, aided by a steep drop in restructuring charges to $147 million from $665 million. Analysts currently rate CSCO a moderate buy, with the stock having outperformed the broader market year-to-date, and the company's forward guidance adds further support; Cisco expects Q2 revenue of $15.00 billion to $15.20 billion and full-year FY2026 revenue of $60.20 billion to $61.00 billion, with non-GAAP EPS of $4.08 to $4.14.

Key Takeaways
  • Networking product revenue grew 15% YoY, driven by fifth consecutive quarter of double-digit Networking order growth
  • AI Infrastructure orders from hyperscaler customers totaled $1.3 billion, reflecting significant acceleration
  • Multi-year, multi-billion-dollar campus networking refresh cycle underway with accelerated order growth across switching, routing, wireless, and IoT
  • Product orders up 13% year over year with growth across all geographies and customer markets
  • Restructuring charges declined sharply from $665M to $147M YoY, boosting operating margins

“We had a solid start to fiscal 2026, and Cisco is on track to deliver our strongest year yet. The widespread demand for our technologies highlights the critical role of secure networking and the value of our portfolio as customers move quickly to unlock the potential of AI.”

Cisco Systems CEO, on the earnings call

Forward Guidance & Outlook

For Q2 FY2026, Cisco guides revenue of $15.0 billion to $15.2 billion, non-GAAP gross margin of 67.5%–68.5%, non-GAAP operating margin of 33.5%–34.5%, non-GAAP EPS of $1.01–$1.03, and GAAP EPS of $0.69–$0.74. For full-year FY2026, revenue is expected at $60.2 billion to $61.0 billion, non-GAAP EPS of $4.08–$4.14, and GAAP EPS of $2.87–$2.98. Guidance includes the estimated impact of tariffs based on current trade policy. The company expects non-GAAP tax rates of approximately 19% for both Q2 and full year. Management highlighted a multi-year, multi-billion-dollar campus networking refresh cycle underway and continued AI relevance building.

CSCO YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$5.0B$10.0B$15.0B$13.8B$14.9BRevenue$9.1B$9.7BGross Profit$2.4B$3.4BOperating Income$2.7B$2.9BNet Income
$0$5.0B$10.0B$15.0BRevenueGross ProfitOperating IncomeNet Income

CSCO Revenue by Segment

Networking$7.8B+15.0%
Services$3.8B+2.0%
Security$2.0B−2.0%
Collaboration$1.1B−3.0%
Observability$274.0M+6.0%

CSCO Revenue by Geography

Americas$9.0B+9.0%
EMEA$3.8B+5.0%
Asia Pacific$2.1B+5.0%

Figures from SEC filings and company reports. Not investment advice.