Cisco Tops Q1 Estimates, Raises FY27 Outlook During Multi-Year Networking 'Supercycle'

Cisco Systems Inc (NASDAQ: CSCO) reported impressive first-quarter results for fiscal 2027, exceeding analysts' expectations. The networking equipment company's revenue reached $18.52 billion, surpassing the estimated $18.14 billion. Adjusted earnings per share were $1.40, outperforming the $1.33 estimate. Year-over-year, total revenue increased by 24%, with product revenue growing 32% and services revenue rising 1%.

Cisco generated $4.4 billion in cash flow from operations, marking a 36% year-over-year increase. With $15.8 billion in cash, cash equivalents, and investments, the company declared, "In Q1, we delivered the strongest revenue and non-GAAP earnings per share growth rates for Cisco in over 15 years." Chairman and CEO Chuck Robbins noted the company's confidence in a multi-year networking supercycle.

Cisco raised its fiscal second-quarter revenue forecast to $18 billion to $18.2 billion, up from $17.89 billion, and adjusted earnings guidance to $1.34 to $1.36 per share, previously $1.23 per share. Additionally, the company expanded its fiscal year 2027 revenue outlook from $72.2 billion to $73.4 billion to $74.8 billion to $75.8 billion, compared to the estimated $73.02 billion. Cisco's shares saw a 1.85% gain in after-hours trading, closing at $103.90 as of publication.