Cisco raises FY27 forecast; shares rise 6.6% after hours

Cisco (CSCO) reported adjusted earnings of $1.40 per share for the fiscal first quarter, above the $1.35 consensus estimate, and raised its fiscal 2027 forecast. Revenue was $18.5 billion, in line with the $18.5 billion estimate.

Shares rose 6.6% after hours at 4:08 p.m. ET, from a $101.99 close.

Revenue grew 24% from a year earlier, with product revenue up 32% and services up 1%. Networking led, rising 43%.

Revenue has risen in each of the last three quarters, from $14.88 billion to $17.25 billion.

Here's how the company did:

• Revenue: $18.5 billion vs. $14.9 billion a year earlier
• Adjusted EPS: $1.40 vs. $1.35 expected, up from $1.00
• GAAP EPS: $1.14 vs. $0.72 a year earlier
• Non-GAAP operating margin: 37.8% vs. 34.4% a year earlier

Segment results

Americas revenue rose 28%, EMEA revenue rose 18% and APJC revenue rose 21%.

Security revenue rose 7%, Collaboration rose 8% and Observability rose 2%.

FY 2027 guidance

Cisco raised its fiscal 2027 non-GAAP EPS forecast to $5.47 to $5.53, from $5.05 to $5.11 on Aug. 12. Revenue for the year is expected at $74.8 billion to $75.8 billion.

For the second quarter, the company expects revenue of $18.0 billion to $18.2 billion and non-GAAP EPS of $1.34 to $1.36.

“We are in the very early stages of a multi-year networking supercycle,” said Chuck Robbins, chair and CEO.

Costs and capital returns

GAAP operating expenses were $6.2 billion, down 3% from a year earlier. Cisco expects its restructuring plan announced May 13, 2026, to be substantially completed by the end of fiscal 2027.

Cisco repurchased about 18 million shares at an average $112.38 for $2.0 billion, and paid a dividend of $0.42 per share, or $1.7 billion. The remaining repurchase authorization is $6.1 billion, with no termination date.

Cisco also closed its acquisition of WideField Security Inc.