Cisco has announced strong financial results for the first quarter of fiscal year 2026, demonstrating impressive growth and a focus on delivering value to shareholders. According to Mark Patterson, Cisco’s CFO, the company surpassed its guidance with a notable increase in both revenue and net income. “We delivered a strong quarter… as well as solid margins and operating cash flow,” he stated. With a multi-billion-dollar campus refresh opportunity underway, Cisco is seeing significant demand for its enhanced networking products, particularly in the realm of artificial intelligence.
Chuck Robbins, CEO of Cisco, emphasized the company’s positive trajectory, noting, “We had a solid start to fiscal 2026… The widespread demand for our technologies highlights the critical role of secure networking.” Cisco reported a first-quarter revenue of $14.9 billion, reflecting an 8% year-over-year increase, along with a net income of $2.9 billion, which equates to $0.72 per share.
The company noted a 13% increase in product orders compared to the previous year, alongside a notable year-over-year growth across all customer markets and geographic segments. This sustained demand is evident in the robust sales of networking products, which grew by double-digits for five consecutive quarters.
Financial highlights reveal a GAAP gross margin of 65.5% and a non-GAAP gross margin of 68.1%, signifying effective cost management and operational efficiency. Operating income also saw a significant rise, with GAAP operating income reaching $3.4 billion, an increase of 43%, and a non-GAAP operating income of $5.1 billion, up 8%. Cisco has returned $3.6 billion to shareholders through dividends and share repurchases, reinforcing its commitment to capital returns.
With the outlook for the second quarter of fiscal 2026, Cisco anticipates revenues between $15.0 billion and $15.2 billion and non-GAAP EPS of $1.01 to $1.03. The forecast reflects optimism surrounding the company’s strategic investments and continued focus on profitable growth.
Furthermore, the completion of the acquisition of Aura Asset Intelligence, a move aimed at strengthening its capabilities in asset and risk intelligence solutions, indicates Cisco’s proactive approach to capitalizing on emerging opportunities.
Overall, Cisco’s financial performance in Q1 FY 2026 showcases a promising start to the fiscal year, driven by strong market demand, strategic investments, and a commitment to delivering shareholder value. The focus on artificial intelligence and networking solutions positions Cisco favorably as it endeavors to meet the evolving needs of its customers in the digital era.