Cisco Reports Strong Q1 2026 Non-GAAP EPS of $1.00, Exceeding Estimates

Cisco (CSCO.US) announced its first quarter fiscal year 2026 results, reporting non-GAAP diluted earnings per share (EPS) of $1.00, a 10% increase year-over-year. This performance surpassed analyst estimates of $0.98. The company achieved total revenue of $14.9 billion, an 8% increase from the prior year's quarter, demonstrating strong top and bottom-line growth.

Strong Product Order Growth and AI Infrastructure

Cisco experienced significant demand for its technologies, with product orders rising 13% year-over-year. This growth was driven by double-digit increases in Networking product orders for the fifth consecutive quarter. Notably, AI Infrastructure orders from hyperscaler customers reached $1.3 billion, indicating a substantial acceleration in this segment.

The company also highlighted a major multi-year, multi-billion-dollar campus networking refresh cycle currently underway. All technologies within campus networking, including switching, routing, wireless, and IoT, saw accelerated order growth in the first quarter, with next-generation solutions like smart switches, secure routers, and WiFi 7 products ramping faster than previous product launches.

Management Outlook and Strategic Focus

Cisco's management expressed optimism for fiscal year 2026, stating the company is on track for its strongest year yet. Chuck Robbins, chair and CEO, emphasized the critical role of secure networking and the value of Cisco's portfolio in unlocking AI's potential.

CFO Mark Patterson reiterated a focus on profitable growth, capital returns, and strategic investments to capitalize on significant market opportunities. For the second quarter of fiscal 2026, Cisco projects revenue between $15.0 billion and $15.2 billion, with non-GAAP EPS expected to range from $1.01 to $1.03. For the full fiscal year 2026, revenue is anticipated to be between $60.2 billion and $61.0 billion, and non-GAAP EPS between $4.08 and $4.14.