Cisco’s stock jumped over 7% in extended trading after reporting a strong fiscal first quarter that beat analyst expectations and was propelled by massive orders for AI infrastructure.
Q1 Financial Performance (Beats Estimates)
| Metric | Cisco Actual (Adjusted) | LSEG Consensus Estimate | Difference |
| EPS | $1.00 | $0.98 | Beat |
| Revenue | $14.88 Billion | $14.77 Billion | Beat |
| Y/Y Revenue Growth | 8% ($14.88B vs. $13.84B last year) |
The AI and Networking Catalysts
The primary driver for this performance and the optimistic outlook comes from two key areas:
- AI Infrastructure Orders: Cisco secured $1.3 billion in AI infrastructure orders from “hyperscaler customers” (large cloud providers), calling it a “significant acceleration in growth.” This positions Cisco as a key player in the ongoing AI boom.
- Networking Segment Strength: The company’s largest business unit saw sales climb 15% to $7.77 billion, significantly surpassing the $7.47 billion expected by analysts. Cisco’s CFO also noted a “multi-year, multi-billion-dollar campus refresh opportunity starting to ramp.”
Upbeat Guidance (Exceeds Analyst Expectations)
Cisco issued strong forward guidance for both the next quarter and the full fiscal year, signaling confidence in sustained growth from the AI and networking trends.
| Period | Cisco Guidance Range | LSEG Average Estimate |
| Q2 Revenue | $15.0B to $15.2B | $14.6 Billion |
| Q2 Adj. EPS | $1.01 to $1.03 | $0.99 |
| Full-Year Revenue | $60.2B to $61.0B | $59.7 Billion |
| Full-Year Adj. EPS | $4.08 to $4.14 | $4.04 |
Segments That Missed
The only soft spots were in the company’s other two main units:
- Security Sales: Fell 2% to $1.98 billion (missed $2.16B estimate).
- Collaboration Sales: Slipped 3% to $1.06 billion (missed $1.09B estimate).
In short: The massive strength and future potential in Networking and AI easily overshadowed the modest declines in Security and Collaboration, powering the earnings beat and driving the stock higher.
