Cisco Beats Q1 Estimates on Record $18.5 Billion Revenue, Raises FY2027 Outlook and AI Target to $9 Billion

CSCO reported record fiscal first-quarter 2027 revenue of $18.52 billion on November 12, up 24% from $14.88 billion a year earlier, and adjusted earnings of $1.40 per share, ahead of consensus estimates of $18.12 billion and $1.33. GAAP net income was $4.6 billion, or $1.14 per share, and adjusted EPS rose 40% (press release). Product revenue grew 32% while services rose 1%, and networking revenue was up 43.3%.

AI was the headline. Cisco raised its expectation for AI infrastructure revenue from hyperscale customers to $9 billion in fiscal 2027, more than double the fiscal 2026 total and up from a prior target of $7.5 billion.

The company lifted its full-year outlook to revenue of $74.8 billion to $75.8 billion, above the $73.2 billion consensus, and adjusted EPS of $5.47 to $5.53, up from the $5.05 to $5.11 range it gave in August (August release). For the second quarter it guided revenue to $18.0 billion to $18.2 billion, against a $17.88 billion estimate, and adjusted EPS of $1.34 to $1.36, versus $1.23 expected. Cisco also declared a quarterly dividend of $0.42 per share.

The shares closed at $102.01 in the regular session before the report and rose in extended trading; CNBC noted the stock was up about 35% year to date. MarketBeat's tally of analysts showed a Moderate Buy consensus with an average target of $127.87 before the results. Investors will watch hyperscaler order flow and whether networking growth holds near current levels as Cisco works toward the $9 billion AI target.