Networking Sales Jump 43 Percent Across All Geographic Segments
Cisco Systems reported fiscal 2027 first-quarter revenue of $18.5 billion on Thursday, surging 24 percent year-over-year for its strongest top-line growth in over 15 years. For the period ended October 24, 2026, GAAP net income climbed 59 percent to $4.6 billion, or $1.14 per diluted share, while non-GAAP earnings jumped 40 percent to $1.40 per share. Product revenue rose 32 percent to $14.667 billion while services revenue edged up 1 percent to $3.850 billion.
Networking led product momentum with a 43 percent surge to $11.132 billion, alongside 7 percent growth in security to $2.120 billion and 8 percent growth in collaboration to $1.136 billion. Geographically, Americas revenue increased 28 percent, EMEA rose 18 percent, and APJC climbed 21 percent. Cisco Chair and CEO Chuck Robbins tied the acceleration directly to artificial intelligence infrastructure: In Q1, we delivered the strongest revenue and non-GAAP earnings per share growth rates for Cisco in over 15 years. Cisco raised its fiscal 2027 revenue outlook to a range of $74.8 billion to $75.8 billion and lifted non-GAAP EPS guidance to $5.47 to $5.53. For the second quarter, management projected revenue between $18.0 billion and $18.2 billion. Cisco also raised its full-year forecast for AI infrastructure revenue from hyperscalers to $9 billion, more than double fiscal 2026 levels.
Operating cash flow increased 36 percent year-over-year to $4.4 billion, while remaining performance obligations climbed 8 percent to $46.2 billion. During the quarter, Cisco returned $3.7 billion to shareholders through $1.7 billion in dividends and $2.0 billion in share repurchases at an average price of $112.38 per share. The board declared a $0.42 quarterly dividend payable January 20, 2027, and Cisco closed its acquisition of WideField Security Inc.
