Cisco Surpasses Q1 2026 Earnings Expectations Amid Rising AI Infrastructure Demand
Cisco Systems recently announced impressive results for the first quarter of fiscal 2026, surpassing analyst estimates with a revenue of $14.88 billion and adjusted earnings of $1.00 per share. The networking giant’s robust performance was primarily driven by a surge in demand for AI infrastructure and campus networking solutions.
Year-over-year, revenue saw an 8% increase, marking the fourth consecutive quarter of growth following four straight quarters of declines. In light of this, the company has raised its full-year guidance, now projecting a revenue between $60.2 billion and $61 billion, a significant increase from the previously estimated $59-60 billion.
CEO Chuck Robbins emphasized the company’s expanding AI opportunities, pointing out $1.3 billion in hyperscaler AI infrastructure orders and a $2 billion enterprise pipeline. Product orders experienced a 13% year-over-year growth across all geographies, with particularly strong performance in service provider and cloud sectors.
During this period, Cisco returned $3 billion to shareholders through dividends and share repurchases, representing 125% of free cash flow. For the second quarter, Cisco anticipates a revenue of $15.0-15.2 billion and adjusted earnings of $1.01-1.03 per share, both predictions exceeding analyst estimates.
These results underscore Cisco’s successful positioning in the AI infrastructure buildout as organizations modernize their networks to support artificial intelligence initiatives.
Source: CNBC