Cisco Systems Inc (NASDAQ:CSCO) reported financial results for the first quarter of fiscal 2026 after the market closed on Wednesday. Here you will find the most important details from the report.
Q1 Highlights: Cisco posted fiscal first-quarter revenue of $14.88 billion, beating analysts estimates of $14.77 billion. The networking equipment maker reported first-quarter adjusted earnings of $1.00 per share, beating analyst estimates of 98 cents per share. Benzinga Pro.
Total revenue increased 8% year-on-year, while product revenue increased 10% and service revenue increased 2%. Product revenue growth was driven by a 15% increase in Networking and a 6% increase in Observability. Security product revenue decreased 2% year-over-year and Collaboration product revenue decreased 3%.
Cisco generated $3.2 billion in cash flow from operations this quarter, down 12% year over year. The company ended the quarter with $15.7 billion in cash, cash equivalents and investments.
“We had a solid start to fiscal 2026 and Cisco is on track to deliver our strongest year yet,” said Chuck Robbinschairman and CEO of Cisco. “The widespread demand for our technologies highlights the critical role of secure networks and the value of our portfolio as customers move quickly to unlock the potential of AI.”
Cisco’s board declared a quarterly dividend of 41 cents per share, payable on January 21, 2026 to shareholders of record as of January 2, 2026. The company also said it repurchased approximately 29 million shares of common stock for $2 billion during the quarter. Cisco still had $12.2 billion left for share buybacks at the end of the quarter.
What’s next: Cisco expects second-quarter revenue between $15 billion and $15.2 billion, compared to estimates of $14.63 billion. The company expects second-quarter adjusted earnings of $1.01 to $1.03 per share, versus estimates of 99 cents per share.
Cisco also raised its expectations for the 2026 fiscal year. The company now expects annual revenue of $60.2 billion to $61 billion, up from its previous guidance of $59 billion to $60 billion. The company raised its full-year adjusted earnings forecast to a range of $4.08 to $4.14 per share, up from a previous range of $4.00 to $4.06 per share. Analysts expect annual revenue of $59.68 billion and annual profit of $4.04 per share, per share. Benzinga Pro.
Cisco’s management team will further discuss the company’s quarterly performance during an earnings call at 4:30 PM ET.
CSCO Price Promotion: Shares of Cisco rose 4.21% after hours on Wednesday, trading at $77.05 at time of publication, according to Benzinga Pro.
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