Cisco beats on earnings, says AI infrastructure revenue will double this fiscal year
Quick Look
- Cisco shares rose in extended trading Thursday after reporting fiscal Q1 adjusted EPS of $1.40 versus $1.33 expected and revenue of $18.5 billion versus $18.1 billion expected, up 24% year-over-year.
- CEO Chuck Robbins cited demand for Cisco's technology in the agentic AI era, and the company raised its AI infrastructure revenue forecast from hyperscalers to $9 billion for this fiscal year.
AI-generated summary
Why It Matters
Cisco is trying to gain a foothold in the artificial intelligence buildout after missing out on the early years of the generative AI boom. The company's stock price is up about 35% this year as of Thursday's close.
Cisco shares rose in extended trading on Thursday after the maker of networking gear reported better-than-expected fiscal first-quarter results.
Here's how the company did compared to LSEG consensus estimates:
EPS: $1.40 adjusted vs. $1.33 expected
Revenue: $18.5 billion vs. $18.1 billion expected.
Revenue increased 24% from $14.88 billion a year earlier, Cisco said in a statement. Net income rose to $4.6 billion, or $1.14 per share, from $2.9 billion, or 72 center per share, a year ago.
Cisco is trying to gain a foothold in the artificial intelligence buildout after missing out on the early years of the generative AI boom. The company's stock price is up about 35% this year as of Thursday's close, trouncing the Nasdaq, which has gained 9% over that stretch.
Cisco raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion this fiscal year, more than double the figure in fiscal 2026.
"Organizations are turning to Cisco for our trusted, market-defining technology and our expertise to help them scale, secure and optimize their environments for the agentic AI era," CEO Chuck Robbins said in the statement.
For the fiscal second quarter, Cisco said it expects revenue of between $18 billion and $18.2 billion, topping the average analyst estimate of $17.88 billion, according to LSEG. The company is projecting adjusted earnings per share of $1.34 to $1.36, beating the $1.23 average estimate.
What to Watch
AI outlook — possibilities, not facts
Cisco's fiscal second-quarter revenue will fall within the guided range of $18 billion to $18.2 billion
Likely · Within weeks
Cisco's AI infrastructure revenue from hyperscalers will reach $9 billion this fiscal year
Possible · Within months
Open Questions
- What specific AI infrastructure products or deals drove the hyperscaler revenue forecast increase?
- How much of Cisco's revenue growth came from AI-related products versus traditional networking gear?
- What were Cisco's gross margins and operating income for the quarter?
