Cisco Reports Record $18.5 Billion Quarterly Revenue, Raises AI Infrastructure Forecast to $9 Billion
Cisco’s fiscal first-quarter revenue rose 24% year over year to a record $18.5 billion, supported by growing demand for networking equipment and AI infrastructure.
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Global N Press
11/14/20262 min read
SAN JOSE, Calif., November 12, 2026 — Cisco Systems reported record first-quarter fiscal 2027 revenue of $18.5 billion, up 24% year over year, as demand for networking equipment and artificial intelligence (AI) infrastructure continued to strengthen. The U.S. technology company also raised its full-year financial outlook, citing broad-based demand across geographic regions and customer markets.
Cisco raised its expectation for AI infrastructure revenue from hyperscale customers to $9 billion in fiscal 2027, more than double the total recorded in fiscal 2026. The revised forecast highlights the growing contribution of AI-related investment to the company's business as cloud providers expand their computing infrastructure.
Networking Demand Drives Revenue Growth
For the quarter ended October 24, 2026, Cisco reported GAAP net income of $4.6 billion, up 59% from a year earlier. GAAP earnings per share reached $1.14, an increase of 58%, while non-GAAP earnings per share rose 40% to $1.40.
The company said its revenue and non-GAAP earnings-per-share growth rates were their strongest in more than 15 years.
Networking was the strongest-performing product category, with revenue increasing 43% year over year to $11.1 billion. Security revenue rose 7% to $2.1 billion, while collaboration revenue increased 8% to $1.1 billion. Overall product revenue grew 32%, compared with a 1% increase in services revenue.
Geographically, revenue in the Americas increased 28%, while Europe, the Middle East and Africa (EMEA) recorded 18% growth. Revenue in Asia-Pacific, Japan and China (APJC) rose 21%, indicating that demand extended across Cisco's major regional markets.
AI Expansion Extends Beyond Semiconductors
Cisco's results highlight how the expansion of AI computing is creating opportunities beyond processors, servers and storage equipment.
As cloud providers and technology companies build larger data centers to train and operate AI models, they require increasingly sophisticated networking systems to connect computing units and facilitate large-scale data transfers. Switches, routers and related infrastructure help manage network traffic, reduce bottlenecks and support increasingly demanding workloads.
Cisco Chief Executive Chuck Robbins described the industry as being in the early stages of a multi-year networking investment cycle. The company's higher AI infrastructure revenue expectation reflects its confidence in continued spending by major cloud providers.
Full-Year Outlook Raised Amid Cost Pressures
Cisco raised its fiscal 2027 revenue forecast to between $74.8 billion and $75.8 billion, compared with its previous range of $72.2 billion to $73.4 billion. Its full-year non-GAAP earnings-per-share guidance also increased to $5.47-$5.53, from $5.05-$5.11.
Despite stronger sales, profitability remains an area to monitor. Cisco's non-GAAP gross margin declined to 65.6% from 68.1% a year earlier, reflecting a less favorable margin profile despite higher revenue. At the same time, its non-GAAP operating margin reached 37.8%, which the company identified as a record.
Cisco's performance provides an indication of how AI investment is reshaping the global technology supply chain. However, sustaining this growth will depend on hyperscale customers' capital expenditure plans, continued demand for networking infrastructure and the pace of AI commercialization.
