The Cisco Systems share price jumped to a new high after the company announced a 5% increase in net income for the first quarter of the 2026 financial year (Q1 FY26) and raised its revenue forecast.
The networking equipment manufacturer said net income rose to US$2.9 billion (A$4.4 billion) in Q1 from $2.7 billion in the previous corresponding period and diluted earnings per share increased 6% to 72 cents on revenue which grew 8% to $14.9 billion.
Cisco said strong top and bottom-line growth exceeded its guidance and delivered continued operating leverage.
AI Infrastructure orders from hyperscaler customers totalled $1.3 billion, reflecting a significant acceleration in growth.
“We had a solid start to fiscal 2026, and Cisco is on track to deliver our strongest year yet,” Chair and CEO Chuck Robbins said in an earnings release.
“The widespread demand for our technologies highlights the critical role of secure networking and the value of our portfolio as customers move quickly to unlock the potential of AI (artificial intelligence).”
Chief Financial Officer Mark Patterson said Cisco delivered a strong quarter with top and bottom-line performance exceeding guidance and solid margins, and operating cash flow.
He said Cisco’s relevance in AI continued to build, and it was starting to ramp up a multi-year, multi-billion-dollar campus refresh opportunity with strong demand for its refreshed networking products.
“Looking ahead, you can expect a continued focus on profitable growth, capital returns, and strategic investments to capture the significant opportunities ahead,” Patterson said.
Cisco said it expected FY26 revenue to be between $60.2 billion and $61 billion, compared with $59 billion to $60 billion forecast previously.
Cisco shares (NASDAQ: CSCO) closed up $3.42 (4.62%) at $77.38 on Thursday (Friday AEDT), capitalising the company at $304.93, after earlier reaching a new high of $79.50.
Based in San Jose, California, the company designs, manufactures and sells a wide range of networking hardware, software, telecommunications equipment and cybersecurity solutions for businesses, governments, and service providers to connect, secure, and automate digital infrastructure.
