Cisco Navigates Tech Headwinds with Narrow Earnings Beat, Steady Outlook

CIsco
reported results on Wednesday that narrowly exceeded analysts’ expectations and issued quarterly guidance that was also better than expected. The stock slipped in extended trading.

Here’s how the company did in comparison with LSEG consensus:

Earnings per share: 99 cents adjusted vs. 98 cents expected
Revenue: $14.67 billion vs. $14.62 billion expected
Revenue increased 7.6% year over year in the quarter, which ended on July 26, according to a statement. Net income rose to $2.82 billion, or 71 cents per share, from $2.16 billion, or 54 cents per share, in the same quarter a year ago.

Management called for 97 cents to 99 cents in fiscal first-quarter adjusted earnings per share on $14.65 billion to $14.85 billion in revenue. Analysts surveyed by LSEG were expecting 97 cents per share on $14.62 billion in revenue.

For the full 2026 fiscal year, Cisco forecast $4 to $4.06 in adjusted earnings per share and $59 billion to $60 billion in revenue. The LSEG consensus was for earnings of $4.03 a share and $59.53 billion in revenue.

In the fiscal fourth quarter, Cisco generated $7.63 billion in networking revenue, up 12%. Analysts polled by StreetAccount were looking for $7.34 billion.

Cisco’s security revenue for the quarter totaled $1.95 billion, up 9% and trailing the StreetAccount esimate of $2.11 billion.

During the quarter, Cisco said it would collaborate with a partnership to invest in artificial intelligence infrastructure, alongside BlackRock
, Microsoft
and other companies. It joined a Stargate data center initiative for the Middle East that involves OpenAI and SoftBank. And the company introduced switches and routers that can take on AI workloads.

“The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target,” Cisco CEO Chuck Robbins said in the statement. The target was $1 billion, Robbins told analysts in May.

At market close on Wednesday, Cisco shares are up 19% in 2025, while the S&P 500 has gained about 10%.

Executives will discuss the results with analysts on a conference call starting at 4:30 p.m. ET.