Cisco and Applied Materials Beat Earnings on AI Demand

Cisco and Applied Materials both beat quarterly earnings estimates Thursday, driven by AI infrastructure demand. Cisco posted fiscal Q1 revenue of $18.5 billion with adjusted EPS of $1.40; Applied Materials reported fiscal Q4 revenue of $10.41 billion with adjusted EPS of $4.16.

Cisco's revenue rose 24% from $14.88 billion a year earlier, with adjusted EPS of $1.40 against a $1.33 LSEG consensus. Applied Materials posted revenue of $10.41 billion versus a $10.30 billion consensus, with adjusted EPS of $4.16 topping the $4.06 estimate.

Cisco raised its fiscal 2027 revenue guidance to $74.8 billion to $75.8 billion and lifted adjusted EPS guidance to $5.47 to $5.53, according to Investing.com. The company also raised its AI infrastructure revenue target from hyperscalers to $9 billion this fiscal year, more than double the fiscal 2026 figure. CEO Chuck Robbins said in a statement that organizations are turning to Cisco to help them scale, secure and optimize their environments for the agentic AI era.

Cisco's net income rose to $4.6 billion, or $1.14 per share, from $2.9 billion a year earlier, CNBC reported. The company guided fiscal second-quarter revenue to $18.0 billion to $18.2 billion, above the $17.88 billion average analyst estimate, with adjusted EPS of $1.34 to $1.36, beating the $1.23 estimate.

Applied Materials guided first-quarter fiscal 2027 revenue to $11.1 billion plus or minus $500 million, ahead of the $10.84 billion consensus, with adjusted EPS of $4.35 plus or minus $0.20, versus a $4.25 estimate, according to Investing.com.

In delayed trading, Cisco shares were up 1.2% and Applied Materials shares were down 3.6%. Cisco's stock is up about 35% this year, outpacing the Nasdaq's 9% gain, CNBC reported.

The next dated event for both companies is their following quarterly reports, expected in early 2027.