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Cisco Q1 FY2027 Net Income Attributable to Shareholders $4.552 Billion, Up 59% YoY

Source: IT之家 Published: Product & Design 中文 增长 3 more articles on this event →
AI summary

Cisco reported Q1 FY2027 (July 26, 2026–October 24, 2026) revenue of $18.517 billion, up 24% YoY, gross profit of $11.788 billion, up 20.96%, and gross margin of 63.7%, down 1.8 percentage points. Net income attributable to shareholders was $4.552 billion, up 59% YoY; operating cash flow was $4.357 billion, up 36%; basic EPS was $1.15 and diluted EPS was $1.14, both up 58%; and the debt-to-asset ratio was 60.14%, down 1.07 percentage points QoQ. Results beat Wall Street consensus, with revenue and GAAP and non-GAAP EPS above the midpoint of expectations, and the company raised its full-year guidance; product revenue rose 32%, service revenue rose 1%, networking rose 43%, all three regions—the Americas, EMEA and APJC—posted double-digit growth, GAAP operating margin was 30.2%, and non-GAAP operating margin reached a record 37.8%.

Translation(model translation, not the source's own text)

Cisco Reports Q1 FY2027 Net Income Attributable to Shareholders of $4.552 Billion, Up 59% YoY

IT Home, November 13 — Cisco today released its first-quarter report for fiscal year 2027 (July 26, 2026 – July 31, 2027), covering the first quarter (July 26, 2026 – October 24, 2026):

  • Total revenue: $18.517 billion (IT Home note: approximately RMB 123.801 billion at current exchange rates), up 24% YoY
  • Gross profit: $11.788 billion (approximately RMB 78.812 billion at current exchange rates), up 20.96% YoY
  • Gross margin: 63.7%, down 1.8 percentage points YoY
  • Net income attributable to shareholders: $4.552 billion (approximately RMB 30.434 billion at current exchange rates), up 59% YoY
  • Operating cash flow: $4.357 billion (approximately RMB 29.13 billion at current exchange rates), up 36% YoY
  • Basic earnings per share: $1.15 (approximately RMB 7.69 at current exchange rates), up 58% YoY
  • Diluted earnings per share: $1.14 (approximately RMB 7.62 at current exchange rates), up 58% YoY
  • Debt-to-asset ratio: 60.14%, down 1.07 percentage points QoQ
AI interpretation: Cisco's first-quarter fiscal 2027 results exceeded Wall Street consensus expectations, with revenue and both GAAP and non-GAAP earnings per share coming in above the midpoint of market expectations, while the company raised its full-year guidance. The company and highlights of the quarter: Cisco is the global leader in enterprise networking equipment, cybersecurity and observability solutions, with core businesses spanning switches, routers, cybersecurity and collaboration software, and is a deep beneficiary of the networking equipment upgrade cycle driven by AI infrastructure buildout. Revenue for the quarter reached $18.517 billion (approximately RMB 123.801 billion at current exchange rates), up 24% YoY, the company's strongest revenue growth in nearly 15 years; product revenue grew 32% YoY, service revenue grew 1% YoY, networking revenue grew 43% YoY, and all three regions — Americas, EMEA and APJC — posted double-digit growth. GAAP net income attributable to shareholders was $4.552 billion (approximately RMB 30.434 billion at current exchange rates), up 59% YoY; GAAP basic earnings per share were $1.15 (approximately RMB 7.69 at current exchange rates) and GAAP diluted earnings per share were $1.14 (approximately RMB 7.62 at current exchange rates), up 58% YoY. GAAP gross margin was 63.7%, down YoY, mainly due to a higher revenue mix from AI-related hardware; GAAP operating margin was 30.2%, and non-GAAP operating margin reached 37.8%, a record high, as operating leverage from economies of scale continued to be realized. Net cash from operating activities was $4.357 billion (approximately RMB 29.13 billion at current exchange rates), up 36% YoY; during the quarter the company returned a total of $3.656 billion to shareholders (approximately RMB 24.443 billion at current exchange rates) through share repurchases and dividends, with $6.1 billion (approximately RMB 40.783 billion at current exchange rates) remaining under its share repurchase authorization. During the quarter the company completed the acquisition of security company WideField Security Inc., further strengthening its security product portfolio. Guidance for the next quarter and full year: Revenue guidance for the second quarter of fiscal 2027 is a range of $18 billion–$18.2 billion (approximately RMB 120.344 billion–121.682 billion at current exchange rates), non-GAAP earnings per share guidance is a range of $1.34–$1.36 (approximately RMB 8.96–9.09 at current exchange rates), and GAAP earnings per share guidance is a range of $1.07–$1.09 (approximately RMB 7.15–7.29 at current exchange rates). Revenue guidance for full fiscal 2027 is a range of $74.8 billion–$75.8 billion (approximately RMB 500.098 billion–506.783 billion at current exchange rates), non-GAAP earnings per share guidance is a range of $5.47–$5.53 (approximately RMB 36.57–36.97 at current exchange rates), and GAAP earnings per share guidance is a range of $4.38–$4.44 (approximately RMB 29.28–29.68 at current exchange rates); the company also raised its full-year expectation for AI infrastructure revenue from hyperscale cloud providers to $9 billion (approximately RMB 60.172 billion at current exchange rates), more than double the prior fiscal year.

AI interpretation

Cisco's first-quarter fiscal 2027 results exceeded Wall Street consensus expectations, with revenue and both GAAP and non-GAAP earnings per share coming in above the midpoint of market expectations, while the company raised its full-year guidance.

Company and highlights of the quarter

Cisco is the global leader in enterprise networking equipment, cybersecurity and observability solutions, with core businesses spanning switches, routers, cybersecurity and collaboration software, and is a deep beneficiary of the networking equipment upgrade cycle driven by AI infrastructure buildout.

  • Revenue for the quarter reached $18.517 billion (approximately RMB 123.801 billion at current exchange rates), up 24% YoY, the company's strongest revenue growth in nearly 15 years; product revenue grew 32% YoY, service revenue grew 1% YoY, networking revenue grew 43% YoY, and all three regions — Americas, EMEA and APJC — posted double-digit growth.
  • GAAP net income attributable to shareholders was $4.552 billion (approximately RMB 30.434 billion at current exchange rates), up 59% YoY; GAAP basic earnings per share were $1.15 (approximately RMB 7.69 at current exchange rates) and GAAP diluted earnings per share were $1.14 (approximately RMB 7.62 at current exchange rates), up 58% YoY.
  • GAAP gross margin was 63.7%, down YoY, mainly due to a higher revenue mix from AI-related hardware; GAAP operating margin was 30.2%, and non-GAAP operating margin reached 37.8%, a record high, as operating leverage from economies of scale continued to be realized.
  • Net cash from operating activities was $4.357 billion (approximately RMB 29.13 billion at current exchange rates), up 36% YoY; during the quarter the company returned a total of $3.656 billion to shareholders (approximately RMB 24.443 billion at current exchange rates) through share repurchases and dividends, with $6.1 billion (approximately RMB 40.783 billion at current exchange rates) remaining under its share repurchase authorization.
  • During the quarter the company completed the acquisition of security company WideField Security Inc., further strengthening its security product portfolio.

Guidance for the next quarter and full year

  • Revenue guidance for the second quarter of fiscal 2027 is a range of $18 billion–$18.2 billion (approximately RMB 120.344 billion–121.682 billion at current exchange rates), non-GAAP earnings per share guidance is a range of $1.34–$1.36 (approximately RMB 8.96–9.09 at current exchange rates), and GAAP earnings per share guidance is a range of $1.07–$1.09 (approximately RMB 7.15–7.29 at current exchange rates).
  • Revenue guidance for full fiscal 2027 is a range of $74.8 billion–$75.8 billion (approximately RMB 500.098 billion–506.783 billion at current exchange rates), non-GAAP earnings per share guidance is a range of $5.47–$5.53 (approximately RMB 36.57–36.97 at current exchange rates), and GAAP earnings per share guidance is a range of $4.38–$4.44 (approximately RMB 29.28–29.68 at current exchange rates); the company also raised its full-year expectation for AI infrastructure revenue from hyperscale cloud providers to $9 billion (approximately RMB 60.172 billion at current exchange rates), more than double the prior fiscal year.

Related reading:

  • "Cisco FY2026 Annual Report: Net Income Attributable to Shareholders $13.267 Billion, Up 30% YoY"
  • "Cisco Q3 FY2026 Net Income $3.373 Billion, Up 35% YoY"

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