Cisco Systems Inc (NASDAQ:CSCO) reported financial results for the first quarter of fiscal 2026 after the market close on Wednesday. Here’s a rundown of the networking equipment maker’s report.
- Cisco Systems stock is trading at elevated levels. What’s the outlook for CSCO shares?
Cisco Systems Beats Estimates In Q2
Cisco reported fiscal second-quarter revenue of $15.35 billion, beating analyst estimates of $15.12 billion. The company reported second-quarter adjusted earnings of $1.04 per share, beating analyst estimates of $1.02 per share, according to Benzinga Pro.
Total revenue was up 10% year-over-year as product revenue increased 14% and services revenue decreased by 1%. Product revenue growth was fueled by a 21% increase in Networking and a 6% increase in Collaboration. Security product revenue was down 4% year-over-year and Observability was flat.
Cisco generated $1.8 billion in cash flow from operations during the quarter, down 19% year-over-year. The company ended the quarter with $15.8 billion in cash, cash equivalents and investments.
“Cisco’s strong second quarter and first half of fiscal 2026 demonstrate both the power of our portfolio and the fundamental role we continue to play in connecting and protecting customers in a rapidly evolving landscape,” said Chuck Robbins, chair and CEO of Cisco.
“With over 40 years of customer trust, global scale, and a relentless focus on innovation, we believe Cisco is uniquely positioned to deliver the trusted infrastructure needed to securely and confidently power the AI-era.”
What’s Next For Cisco?
Cisco sees third-quarter revenue in the range of $15.4 billion to $15.6 billion versus estimates of $15.18 billion. The company anticipates adjusted earnings for the third quarter of $1.02 to $1.04 per share versus estimates of $1.03 per share.
Cisco also raised its fiscal 2026 guidance. The company now expects full-year revenue of $61.20 billion to $61.7 billion, up from prior guidance of $60.20 billion to $61 billion.
The company raised its full-year adjusted earnings guidance to a range of $4.13 to $4.17 per share, up from a prior range of $4.08 to $4.14 per share. Analysts are looking for full-year revenue of $60.74 billion and full-year earnings of $4.12 per share, per Benzinga Pro.
Cisco executives will further discuss the company’s quarterly results on an earnings call set for 4:30 p.m. ET.
CSCO Stock Slips After The Bell
CSCO Price Action: Cisco shares were down 4.35% in after-hours, trading at $81.82 at the time of publication on Wednesday, according to Benzinga Pro.
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