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Oct 25, 2025
Cisco Q1 2026 Earnings Report
Cisco reported strong revenue and earnings growth in Q1 FY2026, exceeding guidance across most key metrics.
Key Takeaways
Cisco exceeded guidance for Q1 FY2026, with strong revenue growth, expanding margins, and a notable rise in AI-related infrastructure orders.
Revenue reached $14.9 billion, up 8% YoY, led by strong networking demand.
GAAP Net Income was $2.9 billion, while Non-GAAP Net Income hit $4.0 billion.
AI infrastructure orders totaled $1.3 billion, reflecting accelerated growth.
GAAP and Non-GAAP gross and operating margins exceeded guidance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Cisco expects Q2 FY2026 revenue of $15.0–$15.2 billion and Non-GAAP EPS of $1.01–$1.03, with continued strength in networking and AI demand.
Positive Outlook
- Revenue guidance raised to $15.0B–$15.2B for Q2 FY2026.
- Non-GAAP EPS forecast at $1.01–$1.03.
- Non-GAAP gross margin guidance of 67.5%–68.5%.
- Strong AI infrastructure order momentum continuing.
- Ongoing demand in campus networking refresh cycle.
Challenges Ahead
- Free cash flow declined 12% YoY.
- Security and Collaboration segments posted revenue declines.
- Cash and investments slightly decreased quarter over quarter.
- Q2 GAAP EPS guidance range ($0.69–$0.74) implies sequential drop.
- Deferred revenue slightly declined from prior quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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