Cisco Systems delivered record fiscal first-quarter 2027 financial results after the market close on Thursday, November 12, 2026. Total quarterly revenue rose 24 percent year-over-year to $18.5 billion, exceeding top-end guidance ranges of $18.0 billion to $18.2 billion, while GAAP net income climbed 59 percent to $4.6 billion.
Cisco's product segment led quarterly growth with a 32 percent revenue surge compared with a one percent gain in services, according to Exhibit 99.1 filed with the U.S. Securities and Exchange Commission. GAAP operating expenses fell three percent year-over-year to $6.2 billion, representing 33.4 percent of revenue. GAAP operating income soared 66 percent to $5.6 billion, yielding an operating margin of 30.2 percent. Non-GAAP adjusted earnings reached $1.40 per share, outperforming Zacks consensus estimates of $1.33 per share by 5.26 percent.
Cisco management stated in its official Thursday afternoon earnings release: "Q1 FY27 was another record quarter for Cisco, with revenue, non-GAAP operating margin, and non-GAAP EPS all exceeding the high end of our guidance ranges." Cisco also declared its regular quarterly cash dividend. Year-to-date, Cisco shares rallied 30.8 percent, outperforming the S&P 500 index's 11.3 percent advance.
Strong enterprise order conversion boosted first-quarter cash flow from operating activities to $4.4 billion, a 36 percent increase over $3.2 billion in the prior-year period. Cisco concluded the quarter with $15.8 billion in cash, cash equivalents, and short-term investments. Earlier this week, Cisco unveiled Frontier AI Red Teaming and Agent Observability tools to secure enterprise AI workflows. During Thursday's earnings conference call, Cisco executives emphasized that enterprise networking upgrades to Wi-Fi 7 and AI-ready campus backbones remain in early deployment stages. Cisco completed operational integration of observability software unit Splunk.
