Cisco CEO Chuck Robbins attends the World Economic Forum in Davos, Switzerland on January 21, 2026.
Cristian Bosi | Bloomberg | Getty Images
Cisco reported better-than-expected quarterly results on Wednesday, but its stock fell about 7% in after-hours trading after the company’s profit outlook for the current period was just below expectations.
Here’s how the company performed compared to the LSEG consensus:
Earnings per share: $1.04 adjusted vs. $1.02 expected Revenue: $15.35 billion vs. $15.12 billion expected
Cisco’s revenue rose about 10% from $14 billion in the same period last year, according to the announcement. Net income increased to $3.18 billion, or 80 cents per share, from $2.43 billion, or 61 cents per share, in the year-ago period. Adjusted figures do not include stock-based compensation expense.
For the current fiscal year, Cisco expects adjusted earnings per share to be in the range of $1.02 to $1.04 and revenue in the range of $15.4 billion to $15.6 billion. Analysts polled by LSEG had expected earnings of $1.03 per share and revenue of $15.18 billion.
Investors have been hoping for Cisco to play a more central role in the artificial intelligence boom that has boosted chipmakers and other data center technology providers. Cisco has seen some acceleration in growth, reporting $2.1 billion in AI infrastructure orders from hyperscalers during the quarter.
Cisco’s core networking revenue increased 21% year over year to $8.3 billion. Analyst estimates compiled by Street Account were $7.9 billion.
During the quarter, Cisco announced that it would provide products to an AI infrastructure project in Saudi Arabia. advanced micro device. Cisco also Nvidia Chip.
“On the sovereign side, there is no real need or expectation for it to have a significant impact in 2026,” Cisco CEO Chuck Robbins said on a conference call with analysts. “So to really accelerate the guide that we’ve provided, we don’t need that. It’s purely a positive direction.”
Increased revenue from neocloud. Neocloud is a younger cloud provider than a mature company. Amazon and microsoftRobbins said the trend started in the second half of the current fiscal year and should become more pronounced in fiscal 2027.
Soaring memory prices due to surging demand for Nvidia graphics processing units are impacting various equipment companies. Robbins said Cisco is announcing price increases and adjusting contracts with channel partners.
“Will customers be willing to buy ahead in some cases? Probably yes,” he said. “But I don’t think that’s going to be a big trend on the networking side of our business.”
For fiscal 2026, Cisco is targeting adjusted earnings per share of $4.13 to $4.17 and revenue of $61.2 billion to $61.7 billion, representing growth of 8.5%. LSEG consensus is for earnings of $4.12 per share and revenue of $60.74 billion.
Spotlight: Cramer’s Stop Trades: Cisco Systems
