Cisco announced its fiscal first‑quarter results on November 12, 2026. The networking giant posted $18.5 billion in revenue, a 24 percent rise from the same quarter a year earlier, and beat the LSEG consensus of $18.1 billion. Adjusted earnings came in at $1.40 per share, topping the $1.33 expected. Net income climbed to $4.6 billion, more than double the $2.9 billion reported a year ago. The strong numbers lifted Cisco’s shares about 35 percent year‑to‑date, far outpacing the Nasdaq’s 9 percent gain.
AI infrastructure sales set to more than double
Cisco said it expects AI infrastructure revenue to reach $9 billion this fiscal year, more than twice the amount earned in FY2026. The company is targeting hyperscalers and other large enterprises that need high‑performance networking to run generative AI workloads. CEO Chuck Robbins described the push as helping customers “scale, secure and optimise their environments for the agentic AI era.” The forecast comes with a second‑quarter outlook of $18 billion to $18.2 billion in total revenue, again above analyst expectations.
Why the numbers matter
Cisco’s earnings beat shows the firm’s core networking business is still growing despite a shift toward cloud‑based services. The doubled AI revenue target signals Cisco’s belief that traditional hardware makers can capture a slice of the AI spending boom by providing the fast, reliable connections AI models need. For businesses, this could mean more Cisco equipment in data centers and edge locations, potentially raising the cost of building AI‑ready infrastructure but also offering a single vendor for both networking and AI‑specific hardware.
Why it matters
For enterprises planning AI projects, Cisco’s higher AI revenue forecast suggests the company will invest in hardware and software that support large‑scale AI workloads. This could make Cisco gear a preferred choice for data‑center upgrades, but customers should watch for potentially higher pricing as demand rises.
