Cisco Posts 8% Revenue Growth, Fueled by Robust Networking Demand

Cisco  reported strong financial results for the first quarter of fiscal year 2026, exceeding its own guidance. The company announced revenue of $14.9 billion, an increase of 8% compared to the same period last year.

Earnings per share also showed solid growth, with non-GAAP EPS reaching $1.00, a 10% year-over-year increase. The company demonstrated strong operational performance, with both GAAP and non-GAAP gross margins and operating margins coming in above the high end of their forecasted ranges.

A key driver of this performance was robust demand across all customer markets and geographies. Total product orders grew by 13% year over year, marking the fifth consecutive quarter of double-digit growth in Networking product orders. A significant highlight was the acceleration in AI Infrastructure, with orders from hyperscaler customers totaling $1.3 billion.

The company also confirmed a major multi-year refresh cycle in campus networking is now underway. All technologies within this segment, including switching, routing, wireless, and IoT, experienced accelerated order growth. The rollout of next-generation solutions like smart switches, secure routers, and WiFi 7 products is progressing faster than previous product launches.

Looking ahead, Cisco provided optimistic guidance for the second quarter, projecting revenue between $15.0 billion and $15.2 billion and non-GAAP EPS of $1.01 to $1.03. For the full 2026 fiscal year, the company expects revenue in the range of $60.2 billion to $61.0 billion and non-GAAP EPS between $4.08 and $4.14.

During the quarter, Cisco also returned $3.6 billion to stockholders through share buybacks and dividends, underscoring its commitment to capital returns. The company stated that its performance highlights the critical role of its secure networking portfolio as customers invest in AI and refresh their infrastructure.