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Cisco beats on earnings, says AI infrastructure revenue will double this fiscal year

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In short

First-quarter adjusted earnings landed at $1.40 per share on $18.5 billion in revenue, easily outpacing analyst consensus estimates. Total sales climbed 24% year-over-year, while net income surged to $4.6 billion compared to $2.9 billion in the prior-year period. Management also issued upbeat guidance for the fiscal second quarter, forecasting adjusted earnings per share between $1.34 and $1.36 on up to $18.2 billion in revenue.

Key points

  • Second-quarter revenue guidance of $18 billion to $18.2 billion surpassed the average ana…: Second-quarter revenue guidance of $18 billion to $18.2 billion surpassed the average analyst estimate of $17.88 billion.
  • Projected second-quarter adjusted earnings of $1.34 to $1.36 per share comfortably topped…: Projected second-quarter adjusted earnings of $1.34 to $1.36 per share comfortably topped the consensus target of $1.23.
  • Cisco shares have risen roughly 35% this year, significantly outpacing the Nasdaq index's…: Cisco shares have risen roughly 35% this year, significantly outpacing the Nasdaq index's 9% advance.

Sources checked by our analysis pipeline: 1

Cisco shares rose in extended trading on Thursday after the maker of networking gear reported better-than-expected fiscal first-quarter results.

Here's how the company did compared to LSEG consensus estimates:

- EPS: $1.40 adjusted vs. $1.33 expected

- Revenue: $18.5 billion vs. $18.1 billion expected.

Revenue increased 24% from $14.88 billion a year earlier, Cisco said in a statement. Net income rose to $4.6 billion, or $1.14 per share, from $2.9 billion, or 72 center per share, a year ago.

Cisco is trying to gain a foothold in the artificial intelligence buildout after missing out on the early years of the generative AI boom. The company's stock price is up about 35% this year as of Thursday's close, trouncing the Nasdaq, which has gained 9% over that stretch.

Cisco raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion this fiscal year, more than double the figure in fiscal 2026.

"Organizations are turning to Cisco for our trusted, market-defining technology and our expertise to help them scale, secure and optimize their environments for the agentic AI era," CEO Chuck…

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