In the first quarter of the fiscal year 2026, Cisco exceeded the expectations of analysts from the London Stock Exchange Group (LSEG) across all key indicators. Adjusted earnings per share, compared to the expected 0.98 USD, reached 1 USD, while revenue rose year-over-year by 8 percent to 14.88 billion USD*. The company also managed to optimize internal processes, as evidenced by a net profit of 2.86 billion USD, which is 5.5 percent more than a year ago. The biggest contribution to these numbers traditionally comes from the networking division. Compared to last year, this division grew by 15 percent, specifically to 7.77 billion USD. The core of Cisco’s business thus ultimately confirmed that the period of slowdown, following the pandemic and weakened corporate capital investments, is over. An inseparable part of quarterly results is, naturally, the reaction of the stock price. Cisco’s value increased by 7 percent following the release of the numbers – since the beginning of the year, investors can now see a return of 25 percent on this investment.*

Performance of Cisco’s Stock Price Over the Last Five Years*

Cisco and AI

Within the latest quarterly results, investors were also pleased to see that Cisco continues its efforts to adapt to the latest trends in the world of technology. It surely comes as no surprise that the central theme is artificial intelligence. The company announced that in the past quarter alone, it secured more than 1.3 billion USD in orders associated with AI infrastructure. According to more detailed statements from the firm, these were deliveries for the largest cloud service and data center providers. Cisco simultaneously introduced a new generation of Ethernet switches based on Nvidia chips. Company leadership further stated that this segment will likely become a billion-dollar opportunity, as several clients urgently need to modernize their existing network infrastructure.

Outlook for the Coming Period

Next, the company is expected to report results for the second quarter, in which management anticipates revenue in the range of 15 to 15.2 billion USD, once again exceeding the LSEG analyst consensus. The full-year outlook was also raised – the company currently projects revenue of 60.2 to 61 billion USD, with adjusted earnings per share in the range of 4.08 to 4.14 USD. These data suggest that the company believes in maintaining stable growth, especially thanks to a continued recovery in the data center segment and the expansion of the AI segment as a whole. [1]

*Past performance is not a guarantee of future results

[1] Forward-looking statements are based on assumptions and current expectations that may be inaccurate, or on the current economic environment, which may change. Such statements are not a guarantee of future performance. They include risks and other uncertainties that are difficult to predict. Actual results may differ significantly from those expressed or implied in any forward-looking statements.