Cisco raises 2027 revenue forecast to $75.8 billion as networking grows 43%
Key Facts
Cisco raised its fiscal 2027 revenue forecast to a range of $74.8 billion to $75.8 billion, compared with a previous range of $72.2 billion to $73.4 billion, in its first-quarter results statement published on November 12, 2026. The update reflects improved expectations alongside expanding demand for networking equipment, after the company posted strong quarterly revenue growth. Cisco said its target for AI infrastructure revenue from hyperscalers was $9 billion in fiscal 2027. That target is more than double the total revenue generated by the business in fiscal 2026. The figures remain company guidance, while reported first-quarter revenue was $18.5 billion.
Revenue in the first quarter of fiscal 2027, which ended on October 24, 2026, rose 24% year over year. The result exceeded the analyst average estimate of $18.14 billion, according to LSEG data cited by Reuters. Product revenue rose 32%, compared with a 1% increase in services revenue, while networking product revenue grew 43%. These figures indicate that products, and networking in particular, were the fastest-growing of the revenue categories reported by the company. Growth also extended across geographic regions, although rates varied by market. Revenue rose 28% in the Americas, 18% in Europe, the Middle East and Africa, and 21% in Asia-Pacific, Japan and China.
On profitability, GAAP net income was $4.6 billion, up 59% year over year, while diluted GAAP earnings per share reached $1.14, up 58%. Non-GAAP earnings per share were $1.40, an increase of 40% year over year. In contrast, the non-GAAP gross margin was 65.6%, compared with 68.1% in the first quarter of fiscal 2026. Operating cash flow was $4.4 billion, up 36% from $3.2 billion in the same period a year earlier. These indicators place revenue, earnings and cash flow growth alongside a year-over-year decline in gross margin.
Chief Executive Chuck Robbins linked the company’s performance to demand for networking, saying Cisco was "in the very early innings of a multiyear supercycle in networking." The description comes as the company raised its estimate for AI infrastructure revenue from hyperscalers to $9 billion in fiscal 2027. The AI target places this business among the components of future revenue expectations, but it does not represent revenue already generated. Networking product growth of 43% year over year in the first quarter also provides an indication of the strength of this business in the period’s results. Product revenue overall rose 32%, while services increased 1%, showing different growth rates across revenue sources.
After the results announcement on November 12, 2026, Cisco shares fell 1.36% in after-hours trading to $100.62, after ending the regular session up 1.24% at $102.01. This came despite quarterly revenue exceeding the analyst average estimate, as the results included an increase in the annual forecast and a higher target for AI infrastructure revenue. The company also announced a quarterly cash dividend of $0.42 per share. The dividend is payable on January 20, 2027, to shareholders of record as of the close of trading on January 4, 2027. The company’s near-term outlook includes revenue of $18.0 billion to $18.2 billion and non-GAAP earnings per share of $1.34 to $1.36 in the second quarter of fiscal 2027.