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Just reported
Q1 FY2027 results
From Cisco Systems's results release of November 12, 2026. These are the company's first figures; its 10-Q or 10-K replaces them when filed.
Revenue
Actual
$18.52B
+24% y/y
+7.3% q/qGuided
$18.1B
midpoint
Above guide+2.3%EPS, adjusted
Actual
$1.40
Guided
$1.33
midpoint
Above guide+5.3%EPS, GAAP: $1.14 · +58% y/y
Operating income, GAAP
Actual
$5.6B
+66% y/y
+31% q/qGuided
—
No guide given
Operating income, adjusted: $7B
Company outlook
Q2 FY2027
- Revenue$18B – $18.2B+18% y/y First given
- EPS, adjusted$1.34 – $1.36First given
- EPS, GAAP$1.07 – $1.09+35% y/y First given
Full year 2027
- Revenue$74.8B – $75.8B+19% y/y Raised +3.4%
- EPS, adjusted$5.47 – $5.53Raised +8.3%
- EPS, GAAP$4.38 – $4.44+32% y/y Raised +9.4%
Set against the company's own guidance and the same quarter a year earlier, not analysts' estimates, which we do not hold. Adjusted figures are the company's own non-GAAP measures, as stated in the release.
The full earnings report →What changed this year
Fiscal year to July 25, 2026, against the year before
Revenue and margins rose, while cash generation was nearly level as inventory and capital spending absorbed more cash.
RevenueRising
+11.8%
Sales growth on the year before
ProfitabilityRising
21.0%
Profit margin, from 18.0%
CashLittle changed
$12.8B
Free cash flow, from $13.3B
Revenue growth came mainly from product sales, especially Networking and AI infrastructure, while services revenue was flat. Net margin increased as operating-margin improvement outweighed lower gross margin and the higher tax share. The Networking mix that supported revenue growth also pressured gross margin, so it links the revenue and profitability changes rather than representing two unrelated drivers. Operating cash flow stayed nearly level as higher collections were offset by supplier payments and a final transition-tax payment; higher capital spending contributed to lower free cash flow.
The full breakdown — every reason in the company’s own words, how revenue, profit and cash connect, and what to watch next — comes with Pro. See what Pro includes
Read from Cisco Systems, Inc.’s own filings by AI. Every reason is quoted from the company; the figures are computed from its filings. Written in English. A description of what happened, not a forecast.
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The themes it is part of
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Cybersecurity
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- +38.8%
- Revenue, 1 year
- +17.3%
+14A 10B 7C 3
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AI networking & optics
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Switches, optical modules, lasers and connectors that move data between AI servers.
- Price, 1 year
- +43.5%
- Revenue, 1 year
- +53.7%
+14A 14B 2C 1D 3
Highest-graded in Communication Equipment
Graded A or B and worth $2B or more: A first, then the largest.
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Grade rose recently in Technology
Rose to A or B on a filing in the last 90 days, worth $2B or more: largest first.
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IBMInternational Business Machines CorporationOct 21, 2026BAGraded B, now A
CDNSCadence Design Systems, Inc.Oct 28, 2026BAGraded B, now A
NXPINXP Semiconductors N.V.Oct 27, 2026BAGraded B, now A- UIUbiquiti Inc.Nov 6, 2026BAGraded B, now A
How it makes money
- Networking equipment and related products32%
- Software subscriptions tied to products20%
- Security products and software9%
- Collaboration products and software5%
- Observability products and software1%
- Services, including subscription services33%
Shares of revenue are estimates for year ended July 31, 2025, not figures from a filing.
Competes with
- ANETArista Networks, Inc.A
- Size
- $248.5B
- Margin
- 40.0%
- AMZNAmazon Web Services (a division of Amazon.com, Inc.)D
- Size
- $2.88T
- Margin
- 16.9%
- FTNTFortinet, Inc.A
- Size
- $94.1B
- Margin
- 29.0%
- HPEHewlett Packard Enterprise CompanyA
- Size
- $66.7B
- Margin
- 6.7%
- PANWPalo Alto Networks, Inc.A
- Size
- $273.5B
- Margin
- 2.7%
- DDOGDatadog, Inc.A
- Size
- $66.6B
- Margin
- 6.1%
What it sells5
Networking
Switches connect devices within offices and data centers; routers direct data between networks; wireless access points provide Wi-Fi; and servers and optical products help carry and process network traffic.
Security
Products include firewalls, tools for managing user access, cloud-based network security, and extended detection and response (XDR) software that helps find and address cyberattacks.
Collaboration
Webex software, video and other collaboration devices, contact-center products, and cloud communications tools let employees and businesses communicate with customers.
Show 2 more
Observability
Splunk products help customers monitor applications, infrastructure, and networks; ThousandEyes checks how networks and cloud services affect access to applications.
Services
Cisco provides technical support, software maintenance, hardware replacement, and professional services such as planning, design, installation, and consulting.
Who buys it4
- Businesses of different sizes buy equipment, software, and support directly from Cisco or through resellers, systems integrators, and service-provider partners.
- Federal, state, and local governments and educational institutions generally buy through technology vendors and channel partners.
- Telecommunications and other service providers buy networking equipment and related services for their own networks and for services they provide to their customers.
- Large cloud providers, including hyperscalers, buy networking equipment and optical products for data centers and connections between facilities.
What it stands on, and what could break it
What the business leans on
- 1Cisco relies on independent contract manufacturers for printed-circuit-board assembly, product assembly, repair, and testing; its 10-K says it has no significant long-term manufacturing contracts.
- 2A substantial portion of sales goes through channel partners, including distributors, systems integrators, service providers, and resellers.
- 3Cisco products use some third-party software and other intellectual property, so it depends on obtaining or renewing licenses.
- 4Cisco's networking products depend on semiconductor and other component supply chains; management discussed direct work with Taiwan Semiconductor Manufacturing Company (TSMC) on supply in the fiscal fourth-quarter 2026 call.
What could go wrong
- 1Sales to cloud and service-provider customers, including hyperscalers buying artificial-intelligence infrastructure, can be volatile and concentrated among a limited number of customers.
- 2If Cisco fails to develop new products or keep existing products aligned with changing technology and customer needs, customers may choose competing products and Cisco's results may suffer.
- 3Cisco sells through distributors and other channel partners; changes or disruption in that route to customers, or excess inventory held in its two-tier distribution channel, can hurt sales or margins.
About Cisco Systems, Inc.
Cisco makes switches, routers, wireless equipment, servers, and optical networking products that connect computers, data centers, workplaces, and communications networks. It also sells security, collaboration, and observability software, including Webex and Splunk products, and provides technical support and consulting. Customers buy directly from Cisco or through resellers and other channel partners.
- Head office
- San Jose, California
- Founded
- 1984 (incorporated in California)
- Employees
- approximately 82,400 (July 25, 2026, high)
- Listed on
- Nasdaq
- Financial year ends
- July; fiscal 2026 ended July 25
Built from Cisco Systems, Inc.’s own filings with the U.S. Securities and Exchange Commission (SEC). Figures are as reported, with per-share history restated onto today’s share basis. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.