The numbers for the quarter
Cisco announced the results for the first quarter of its fiscal year 2027, ended October 24, 2026, as reported by IT之家. The company recorded revenue of $185.17 billion, up 24% compared with the same period a year earlier. Gross profit stood at $117.88 billion, an increase of 20.96%, while gross margin fell 1.8 percentage points to 63.7%.
Net income attributable to shareholders reached $45.52 billion, an increase of 59%. Basic earnings per share were $1.15, up 58%, while diluted earnings per share stood at $1.14, also up 58%. Operating cash flow reached $43.57 billion, up 36%.
The weight of artificial intelligence hardware
According to the analysis reported by the source, the decline in gross margin reflects a greater proportion of revenue from AI-related hardware. In the same period, GAAP operating margin stood at 30.2%, while non-GAAP operating margin reached 37.8%, a level described as a record high. The company also completed the acquisition of security firm WideField Security Inc., a move the source links to a strengthening of its security product line.
In the quarter, Cisco returned $36.56 billion to shareholders through share buybacks and dividends. The remaining authorization for buybacks amounts to $61 billion.
Forecasts for the rest of the year
For the second fiscal quarter, Cisco indicates revenue of between $180 billion and $182 billion. Non-GAAP earnings per share are expected to be between $1.34 and $1.36, and GAAP between $1.07 and $1.09. For full fiscal year 2027, the company expects revenue of between $748 billion and $758 billion, with non-GAAP earnings per share of between $5.47 and $5.53 and GAAP of between $4.38 and $4.44.
The source reports that Cisco has raised to $90 billion its estimate for annual revenue related to AI infrastructure supplied to major cloud providers, a value that would be more than double that of the previous fiscal year. The detail on which this revision is based has not been disclosed.
