Cisco Systems reported first-quarter fiscal 2027 results that surpassed analyst expectations, with adjusted earnings per share of $1.40 against a consensus estimate of $1.35. Revenue reached $18.52 billion, representing 24% year-over-year growth for the quarter ended October 24, 2026.
The strong performance prompted Cisco to raise its full-year guidance. The company now expects FY 2027 revenue between $74.8 billion and $75.8 billion, up from prior guidance of $72.2 billion to $73.4 billion. Non-GAAP EPS guidance was raised to $5.47 to $5.53 from $5.05 to $5.11.
Segment Performance and Growth Drivers
The Networking segment drove the quarter with 43% growth. Other product segments showed more modest gains: Security grew 7%, Collaboration 8%, and Observability 2%. Product revenue rose 32% overall, while services revenue increased 1%.
Cisco also raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion in FY 2027, more than double the total for FY 2026.
Financial Metrics
GAAP earnings per share reached $1.14, up 58% year-over-year. Non-GAAP operating margin expanded to 37.8%, compared to GAAP operating margin of 30.2%. Cash flow from operating activities was $4.4 billion, up 36% year-over-year.
Remaining performance obligations reached $46.2 billion, up 8%. Operating leverage contributed to earnings growth outpacing revenue growth, according to the company.
Capital Returns and Dividend
Cisco returned $3.7 billion to stockholders through share buybacks and dividends in the quarter. The company declared a quarterly dividend of $0.42 per common share, payable January 20, 2027, to stockholders of record as of January 4, 2027. The remaining share repurchase authorization stands at $6.1 billion with no termination date.
Forward Outlook
For the second quarter of fiscal 2027, Cisco guided to revenue of $18.0 billion to $18.2 billion and non-GAAP EPS of $1.34 to $1.36. The company estimated GAAP EPS of $1.07 to $1.09 for Q2 FY 2027.
The company noted that large and concentrated purchases by cloud and hyperscaler customers and the timing of AI infrastructure deployments present risk factors to its outlook.
