Cisco (CSCO) shares rose 4% in extended trading on Wednesday after the networking equipment giant reported fiscal first-quarter results that were above Wall Street’s estimates and raised its full-year forecast.
For the period ending Oct. 25, Cisco said it earned an adjusted $1 per share as revenue rose xx% year-over-year to come in at $14.88B. Service revenue came in at $3.81B, up 2% year-over-year, while product revenue rose 10% from a year-ago to come in at $11.08B for the period. Adjusted gross margin came in at 68.1% for the period.
Cisco said it ended the period with $42.9B in remaining performance obligations, up 7% year-over-year.
Analysts were expecting adjusted earnings of $0.98 per share and $14.78B in revenue.
“We had a solid start to fiscal 2026, and Cisco is on track to deliver our strongest year yet,” said Chuck Robbins, chair and CEO of Cisco. “The widespread demand for our technologies highlights the critical role of secure networking and the value of our portfolio as customers move quickly to unlock the potential of AI.”
Looking to the second-quarter, Cisco forecast sales between $15B and $15.2B, above the $14.6B analysts were expecting. Adjusted earnings are forecast to be between $1.01 and $1.03 per share, above the $0.98 per share estimate. Adjusted gross margins are forecast to be between 67.5% and 68.5%, slightly below the 68.2% estimate.
For fiscal 2026, Cisco said it now expects adjusted earnings to be between $4.08 and $4.14, compared to a prior view of $4 to $4.06 per share and above the $4.04 per share estimate. Sales are now expected to be between $60.20B and $61B, above the previous forecast of $59B to $60B. Analysts were expecting $59.64B in revenue.
Following Cisco’s results, competitor Arista Networks (ANET) rose in sympathy.
The company will host a conference call at 4:30 p.m. EST to discuss the results.