Cisco Beats Q1 Estimates, Hikes AI Ambitions With Hyperscalers

Results That Moved the Stock

Cisco shares climbed in after-hours trading Thursday after a stronger-than-expected fiscal first quarter. Adjusted earnings were $1.40 per share on $18.5 billion in revenue, topping LSEG estimates of $1.33 and $18.1 billion.

Profit also accelerated. The company reported net income of $4.6 billion, equal to $1.14 per share, compared with $2.9 billion, or 72 cents per share, in the prior year. The stock is up about 35% this year through Thursday's close, outpacing the Nasdaq's 9% gain over the same span.

AI Push And Near-Term Guidance

Cisco is working to plant a larger flag in AI infrastructure after missing the earliest phase of the generative AI rush. It now expects $9 billion in AI infrastructure revenue from hyperscalers this fiscal year, a sum it said is over twice the fiscal 2026 amount. "Organizations are turning to Cisco for our trusted, market-defining technology and our expertise to help them scale, secure and optimize their environments for the agentic AI era," CEO Chuck Robbins said.

What It Means For Your Portfolio

Beat-and-raise quarters tied to a clear growth theme tend to get attention, and Cisco just paired outperformance with a larger AI pipeline aimed at hyperscalers. Near-term guidance running ahead of consensus adds support to that story.

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The bottom line: if AI capex by hyperscalers stays elevated, Cisco's $9 billion target sets a higher bar for revenue mix and margin potential to watch in coming quarters.

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