- Revenue hit a record $18.5 billion, up 24% year over year, Cisco's fastest growth in over 15 years
- Cisco raised its FY27 revenue and non-GAAP EPS guidance
- AI infrastructure revenue from hyperscalers is now expected to reach $9 billion in FY27, more than double FY26
Cisco reported first-quarter results for the period ended October 24, 2026, with record revenue, record GAAP and non-GAAP earnings per share, and a record non-GAAP operating margin. Demand was broad-based, with double-digit growth across all geographies and customer markets.
"In Q1, we delivered the strongest revenue and non-GAAP earnings per share growth rates for Cisco in over 15 years," stated Cisco CEO Chuck Robbins in the press release announcing the earnings. He added that the company is "in the very early stages of a multi-year networking supercycle."
Cisco Q1 by the numbers
- Revenue: $18.5 billion, up 24% year over year
- Total product orders: up 21% year over year
- Networking product orders: up 28%, the ninth straight quarter of double-digit growth
- Q2 FY27 guidance: revenue of $18.0 billion to $18.2 billion
- FY27 guidance: revenue of $74.8 billion to $75.8 billion
Demand looks broad, not just hyperscale
Product orders excluding hyperscalers rose 14% year over year, and telco orders climbed roughly 20%. Robbins noted double-digit order growth across every product family, including service provider routing, compute, enterprise routing, wireless, data center switching and campus switching. Enterprise adoption of AI infrastructure, he said, is "just beginning."
Neocloud exposure
Asked about neoclouds, Robbins described Cisco's exposure as "relatively immaterial" and said the company has been conservative given credit concerns. Neocloud business is not included in Cisco's AI revenue, which counts hyperscalers only.
The neocloud caution is not unfounded. Gartner has argued that current data center capital expenditure trends are unsustainable, since enterprise and consumer demand will not match spending until the early 2030s. The firm's recent report specifically pointed to neoclouds as the most exposed if revenue falls short of expectations.
Supply chain improvements
Regarding supply chain concerns, CFO Mark Patterson said supply is in good shape, helped by long-term supply agreements, including a new multiyear memory deal that raised advance purchase commitments. Optics is the tightest area, though he expects improvement next quarter and said Cisco could meet even stronger demand.
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