Cisco (CSCO) Q1 2026 Financial Results Summary
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Cisco Systems, Inc. (CSCO) Q1 2026 Financial Results Summary
Release Date: November 12, 2025.
Cisco Systems, Inc. has reported its financial results for the first quarter of fiscal year 2026, concluding on October 25, 2025. The company demonstrated strong growth in both revenue and earnings, exceeding analysts’ expectations.
Financial Highlights
- Revenue:
- Total revenue reached $14.9 billion, representing an 8% increase year-over-year.
- Product revenue was up 10%.
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Services revenue grew by 2%.
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Earnings Per Share (EPS):
- GAAP EPS was $0.72, up 6% compared to last year.
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Non-GAAP EPS amounted to $1.00, an increase of 10% year-over-year.
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Net Income:
- GAAP net income was $2.9 billion, reflecting a 5% increase year-over-year.
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Non-GAAP net income increased to $4.0 billion, a growth of 9% compared to the same quarter last year.
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Margins:
- GAAP gross margin was at 65.5%, down marginally from 65.9% a year ago.
- Non-GAAP gross margin was 68.1%, down from 69.3% year-over-year.
- GAAP operating margin became 22.6% (up 43%), and Non-GAAP operating margin increased to 34.4% (up 8%).
Segment Performance
- Geographical Performance:
- Americas: Revenue grew by 9%.
- EMEA: Revenue increased by 5%.
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APJC: Revenue also climbed by 5%.
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Product Categories:
- Networking product revenue surged by 15%.
- Security revenue, however, declined by 2%.
- Collaboration saw a decrease of 3% but Observability increased by 6%.
Cash Flow and Capital Return
- Cash Flow from Operations:
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Operating cash flows totaled $3.2 billion, down by 12% compared to last year’s $3.7 billion.
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Capital Allocation:
- Cisco returned $3.6 billion to shareholders through share buybacks and dividends.
- Declared a quarterly dividend of $0.41 per common share, about $1.6 billion in total, to be paid on January 21, 2026.
- Approximately 29 million shares were repurchased at an average price of $68.28, totaling $2.0 billion.
Future Guidance
Cisco has issued guidance for the second quarter and full fiscal year 2026:
– Q2 FY 2026 Revenue: Expected between $15.0 billion to $15.2 billion.
– EPS Guidance:
– GAAP: Anticipated between $0.69 to $0.74.
– Non-GAAP: Expected between $1.01 to $1.03.
– FY 2026 Revenue Guidance: Expected between $60.2 billion to $61.0 billion.
– Full Year EPS Guidance:
– GAAP: Expected between $2.87 to $2.98.
– Non-GAAP: Anticipated between $4.08 to $4.14.
Key Metrics Summary
- Product Orders: Increased by 13% year-over-year, with double-digit growth in Networking.
- AI Infrastructure Orders: Increased significantly to $1.3 billion, showcasing accelerating demand.
- Deferred Revenue: Total deferred revenue was $28.0 billion, up 2%.
- Remaining Performance Obligations: Amounted to $42.9 billion, with total obligations up 7%.
Cisco continues to emphasize its focus on profitable growth, strategic investments, and capital returns as it navigates a strong demand for secure networking solutions and AI capabilities. Future results will be closely monitored as Cisco prepares for its upcoming quarterly performance call.
Here are the extracted tables from the press release:
CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per-share amounts) (Unaudited)
| Three Months Ended | October 25, 2025 | October 26, 2024 |
|---|---|---|
| REVENUE: | ||
| Product | $11,077 | $10,114 |
| Services | $3,806 | $3,727 |
| Total revenue | $14,883 | $13,841 |
| COST OF SALES: | ||
| Product | $3,934 | $3,526 |
| Services | $1,204 | $1,194 |
| Total cost of sales | $5,138 | $4,720 |
| GROSS MARGIN | $9,745 | $9,121 |
| OPERATING EXPENSES: | ||
| Research and development | $2,400 | $2,286 |
| Sales and marketing | $2,871 | $2,752 |
| General and administrative | $733 | $795 |
| Amortization of purchased intangible assets | $231 | $265 |
| Restructuring and other charges | $147 | $665 |
| Total operating expenses | $6,382 | $6,763 |
| OPERATING INCOME | $3,363 | $2,358 |
| Interest income | $222 | $286 |
| Interest expense | $(350) | $(418) |
| Other income (loss), net | $156 | $41 |
| Interest and other income (loss), net | $28 | $(91) |
| INCOME BEFORE PROVISION FOR INCOME TAXES | $3,391 | $2,267 |
| Provision for (benefit from) income taxes | $531 | $(444) |
| NET INCOME | $2,860 | $2,711 |
| Net income per share: | ||
| Basic | $0.72 | $0.68 |
| Diluted | $0.72 | $0.68 |
| Shares used in per-share calculation: | ||
| Basic | 3,956 | 3,990 |
| Diluted | 3,993 | 4,013 |
CISCO SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
| October 25, 2025 | July 26, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $8,400 | $8,346 |
| Investments | $7,336 | $7,764 |
| Accounts receivable, net of allowance of $62 at October 25, 2025 and $69 at July 26, 2025 | $4,827 | $6,701 |
| Inventories | $3,395 | $3,164 |
| Financing receivables, net | $3,085 | $3,061 |
| Other current assets | $5,833 | $5,950 |
| Total current assets | $32,876 | $34,986 |
| Property and equipment, net | $2,248 | $2,113 |
| Financing receivables, net | $3,719 | $3,466 |
| Goodwill | $59,119 | $59,136 |
| Purchased intangible assets, net | $8,713 | $9,175 |
| Deferred tax assets | $7,314 | $7,356 |
| Other assets | $7,113 | $6,059 |
| TOTAL ASSETS | $121,102 | $122,291 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Short-term debt | $6,725 | $5,232 |
| Accounts payable | $2,418 | $2,528 |
| Income taxes payable | $2,471 | $1,857 |
| Accrued compensation | $3,064 | $3,611 |
| Deferred revenue | $15,801 | $16,416 |
| Other current liabilities | $4,972 | $5,420 |
| Total current liabilities | $35,451 | $35,064 |
| Long-term debt | $21,364 | $22,861 |
| Income taxes payable | $2,172 | $2,165 |
| Deferred revenue | $12,168 | $12,363 |
| Other long-term liabilities | $3,074 | $2,995 |
| Total liabilities | $74,229 | $75,448 |
| Total equity | $46,873 | $46,843 |
| TOTAL LIABILITIES AND EQUITY | $121,102 | $122,291 |