Cisco Reports Record Q1 Revenue but Orders Miss, Shares Fall 6.3%

Cisco (CSCO) reported first-quarter fiscal 2027 revenue of $18.5 billion, up 24% year over year, with non-GAAP earnings per share of $1.40, up 40%. But product orders rose 21%, missing expectations and marking a slowdown from the prior period, and shares fell 6.3% in delayed trading.

The networking company raised its full-year revenue guidance to $74.8 billion to $75.8 billion and non-GAAP EPS to $5.47 to $5.53. It also raised its AI infrastructure revenue expectation from hyperscalers to $9 billion in fiscal 2027, more than double fiscal 2026's total. Second-quarter guidance calls for revenue of $18.0 billion to $18.2 billion and non-GAAP EPS of $1.34 to $1.36.

Chief executive Chuck Robbins said organizations are turning to Cisco for technology to scale, secure and optimize environments for the agentic AI era, and that the company is in the very early stages of a multi-year networking supercycle. Chief financial officer Mark Patterson said Q1 performance exceeded the high end of guidance ranges and gives confidence to raise full-year guidance.

On a GAAP basis, net income was $4.6 billion, up 59% year over year, with GAAP EPS of $1.14, up 58%. GAAP operating margin was 30.2% and non-GAAP operating margin was 37.8%. Revenue rose from $14.9 billion in the year-earlier quarter.

Cisco said it delivered its strongest revenue and non-GAAP EPS growth rates in over 15 years, with record non-GAAP operating margin reflecting focused execution and operating efficiency. Demand was broad-based, with double-digit growth across all geographies and customer markets.

The market reaction focused on product orders. Shares of Cisco (CSCO) were down 6.3% in delayed trading after the results.