Global Finance News
13 Nov 2026, 09:14
Cisco Falls 1.6% After Hours Despite Record Q1 Results and Raised FY2027 Guidance
Cisco Systems (NASDAQ: CSCO) shares fell about 1.6% in after-hours trading despite delivering record fiscal first-quarter results and raising its full-year revenue and earnings outlook.
Fiscal Q1 revenue surged 24% year over year to a record $18.5 billion, while GAAP EPS increased 58% to $1.14 and non-GAAP EPS jumped 40% to $1.40. Non-GAAP operating margin reached a record 37.8%.
Growth was broad-based, with product revenue up 32%. Networking revenue climbed 43%, Security grew 7%, Collaboration increased 8% and Observability rose 2%. Revenue increased 28% in the Americas, 18% in EMEA and 21% in APJC.
Cisco also raised its fiscal 2027 outlook. The company now expects revenue of $74.8-$75.8 billion and non-GAAP EPS of $5.47-$5.53. It increased its expectation for AI infrastructure revenue from hyperscalers to $9 billion for fiscal 2027, more than double the total generated in fiscal 2026.
However, second-quarter guidance implies some sequential moderation. Cisco expects Q2 revenue of $18.0-$18.2 billion, below the $18.5 billion reported in Q1, while non-GAAP EPS is projected at $1.34-$1.36 versus $1.40 in the latest quarter. Non-GAAP operating margin is expected at 36%-37%, also below Q1’s 37.8%.
Gross margins also declined year over year. Non-GAAP gross margin fell to 65.6% from 68.1%, while product gross margin decreased to 63.7% from 67.2%.
The 1.6% after-hours decline appears to reflect elevated expectations and investor focus on sequentially softer Q2 revenue, earnings and margin guidance, despite record Q1 performance, a higher full-year outlook and accelerating AI infrastructure demand.
Cisco Systems (NASDAQ: CSCO) shares fell about 1.6% in after-hours trading despite delivering record fiscal first-quarter results and raising its full-year revenue and earnings outlook.
Fiscal Q1 revenue surged 24% year over year to a record $18.5 billion, while GAAP EPS increased 58% to $1.14 and non-GAAP EPS jumped 40% to $1.40. Non-GAAP operating margin reached a record 37.8%.
Growth was broad-based, with product revenue up 32%. Networking revenue climbed 43%, Security grew 7%, Collaboration increased 8% and Observability rose 2%. Revenue increased 28% in the Americas, 18% in EMEA and 21% in APJC.
Cisco also raised its fiscal 2027 outlook. The company now expects revenue of $74.8-$75.8 billion and non-GAAP EPS of $5.47-$5.53. It increased its expectation for AI infrastructure revenue from hyperscalers to $9 billion for fiscal 2027, more than double the total generated in fiscal 2026.
However, second-quarter guidance implies some sequential moderation. Cisco expects Q2 revenue of $18.0-$18.2 billion, below the $18.5 billion reported in Q1, while non-GAAP EPS is projected at $1.34-$1.36 versus $1.40 in the latest quarter. Non-GAAP operating margin is expected at 36%-37%, also below Q1’s 37.8%.
Gross margins also declined year over year. Non-GAAP gross margin fell to 65.6% from 68.1%, while product gross margin decreased to 63.7% from 67.2%.
The 1.6% after-hours decline appears to reflect elevated expectations and investor focus on sequentially softer Q2 revenue, earnings and margin guidance, despite record Q1 performance, a higher full-year outlook and accelerating AI infrastructure demand.
