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Cisco Q1 revenue beats on networking demand

By Reuters News


Overview

  • U.S. networking equipment maker's fiscal Q1 revenue rose 24%, beating analyst expectations

  • Adjusted EPS for fiscal Q1 rose 40%, beating analyst estimates

  • Company raised FY27 revenue and non-GAAP EPS guidance


Outlook

  • Cisco sees Q2 revenue between $18.0 bln and $18.2 bln

  • Company raises FY27 revenue guidance to $74.8 bln-$75.8 bln

  • Cisco expects FY27 AI infrastructure revenue from hyperscalers to reach $9 bln


Result Drivers

  • NETWORKING DEMAND - Product revenue growth was led by networking, which rose 43% year over year

  • BROAD-BASED GROWTH - Co cited double-digit revenue growth across all geographies and customer markets

  • OPERATING EFFICIENCY - Record non-GAAP operating margin attributed to focused execution and operating efficiency


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Revenue

Beat

$18.5 bln

$18.13 bln (20 Analysts)

Q1 Adjusted EPS

Beat

$1.40

$1.33 (21 Analysts)

Q1 EPS

$1.14

Q1 Net Income

$4.6 bln

Q1 Adjusted Operating Margin

37.8%

Q1 Operating Margin

30.2%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the communications & networking peer group is "buy"

  • Wall Street's median 12-month price target for Cisco Systems Inc is $133.00, about 32% above its November 11 closing price of $100.76

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 24 three months ago


Reuters Recommended Reads

  • Nov 10 - CoreWeave Q3 revenue more than doubles, beats analyst estimates

  • Nov 12 - UK's Volex H1 revenue rises 24% on EV, data centre strength

  • Nov 9 - Aaon Q3 revenue jumps 84%, beats analyst estimates on strong data-center demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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