Cisco posts record $18.5 billion first-quarter revenue as AI infrastructure orders surge

SAN JOSE, California, Nov 12 — Networking giant Cisco reported fiscal 2027 first-quarter results after the market closed on Thursday, with revenue of $18.52 billion, up 24% year over year — a quarterly record and the company's fastest revenue growth in more than 15 years. Cisco also sharply raised its full-year guidance and lifted its hyperscaler AI infrastructure revenue expectation to about $9 billion, a sign that the AI spending boom is not cooling.

Record profit as networking grows 43%

For the quarter ended October 24, GAAP net income was $4.6 billion, or $1.14 per share, up 58% year over year, while non-GAAP earnings per share reached $1.40, up 40%. Both were records and above the top end of the company's own guidance. Product revenue rose 32%, with networking up 43%, while services revenue edged up 1%. Revenue also beat the average analyst estimate of about $18.1 billion.

Guidance raised as AI orders drive growth

Cisco raised its fiscal 2027 revenue guidance to $74.8 billion to $75.8 billion, from $72.2 billion to $73.4 billion in August, and its non-GAAP earnings-per-share guidance to $5.47 to $5.53, from $5.05 to $5.11. Second-quarter revenue guidance is $18.0 billion to $18.2 billion. Chief executive Chuck Robbins told analysts on the earnings call that AI infrastructure demand was the main driver of the quarter.

The company expects AI infrastructure revenue from hyperscale cloud providers to reach about $9 billion in fiscal 2027, up from a $7.5 billion target set three months ago and more than double the roughly $4 billion recorded in fiscal 2026. Cisco has won 18 AI infrastructure design contracts over the past five quarters. AI revenue is expected to account for about 12% of total revenue for the year, up from 6% in fiscal 2026.

Market reaction and what comes next

Cisco shares edged lower in after-hours trading following the results. The next question for the market is whether the company can keep converting its strong AI order book into sustained revenue growth, and how far networking demand spreads among enterprise customers.

(Sources: Cisco; Reuters / LSEG.)