Cisco 8-K
PositiveEarningsGuidance raised
Networking strength lifts FY2027 guidance; hyperscaler AI infrastructure revenue outlook rises to $9B from $7.5B
Filed 2026-11-12 16:06 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q1 FY2027 results with Q2 and FY2027 guidance. Record revenue grew 24% Y/Y, with Networking revenue up 43% as demand grew across geographies and customer markets.
Q2 revenue guidance midpoint is 2.3% below Q1 Q/Q and 18% above Q1 FY2026 Y/Y; non-GAAP EPS guidance midpoint is 3.6% below Q1 Q/Q. Cisco raised FY2027 revenue guidance to $74.8B-$75.8B from $72.2B-$73.4B and non-GAAP EPS guidance to $5.47-$5.53 from $5.05-$5.11, citing the quarter’s strength and operating leverage as the business scales.
Developments
- FY2027 AI infrastructure revenue from hyperscalers is now expected to reach $9B, raised from $7.5B and up 125% Y/Y, more than double FY2026 revenue in that market.
- Cisco closed its acquisition of WideField Security, a privately held security company, during the quarter.
Results with guidance
| Metric | Guided for Q1 FY2027 | Q1 FY2027 actual | Q2 FY2027 guide | FY2027 guide |
|---|---|---|---|---|
| Revenue | $18.0B-$18.2B | $18.5B (beat)+24% Y/Y, +7.3% Q/Q | $18.0B-$18.2B-2.3% Q/Q at midpoint; +18% Y/Y at midpoint (worse than reported) | $74.8B-$75.8B+19% Y/Y at midpointraised from $72.2B-$73.4B |
| Diluted EPS | $1.08-$1.10 | $1.14 (beat)+58% Y/Y, +18% Q/Q | $1.07-$1.09-5.3% Q/Q at midpoint; +35% Y/Y at midpoint (worse than reported) | $4.38-$4.44+32% Y/Y at midpointraised from $4.00-$4.06 |
| Non-GAAP EPS (non-GAAP) | $1.32-$1.34 | $1.40 (beat)+40% Y/Y, +15% Q/Q | $1.34-$1.36-3.6% Q/Q at midpoint (worse than reported) | $5.47-$5.53+27% Y/Y at midpointraised from $5.05-$5.11 |
| Gross margin | 63%-64% | 63.7% (in line)-1.8 pp Y/Y | 63%-64%-0.2 pp Q/Q at midpoint (in line with reported) | — |
| Non-GAAP gross margin (non-GAAP) | 65%-66% | 65.6% (in line)-2.5 pp Y/Y, -0.7 pp Q/Q | 65%-66%-0.1 pp Q/Q at midpoint (in line with reported) | — |
| Operating margin | 28%-29% | 30.2% (beat)+5.5 pp Q/Q | 27%-28%-2.7 pp Q/Q at midpoint (worse than reported) | — |
| Non-GAAP operating margin (non-GAAP) | 35.5%-36.5% | 37.8% (beat)+1.9 pp Q/Q | 36%-37%-1.3 pp Q/Q at midpoint (worse than reported) | — |
| GAAP effective tax provision rate | 15% | 17.2% (missed) | 14.5%-2.7 pp Q/Q at midpoint (better than reported) | 16%raised from 14.5% |
| Non-GAAP effective tax provision rate (non-GAAP) | 18.5% | 18.5% (in line) | 18.5%+0.0 pp Q/Q at midpoint (in line with reported) | 18.5%reaffirmed from 18.5% |
| AI infrastructure revenue | — | — | — | $9B+125% Y/Y at midpointraised from $7.5B |
| Share-based compensation expense (non-GAAP) | — | — | 1.0%; $0.14 | $0.63raised from $0.60 |
| Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs (non-GAAP) | — | — | 1.0%; $0.08 | $0.34reaffirmed from $0.34 |
| Significant asset impairments and restructurings (non-GAAP) | — | — | —; $0.05 | $0.11reaffirmed from $0.11 |
Earlier guidance from the 8-K filed 2026-08-12.
Results without guidance
| Metric | Q1 FY2027 | Change |
|---|---|---|
| Operating income | $5.60B | +66% Y/Y, +31% Q/Q |
| Non-GAAP operating income (non-GAAP) | $7.00B | +37% Y/Y |
| Net income | $4.55B | +59% Y/Y, +18% Q/Q |
| Non-GAAP net income (non-GAAP) | $5.60B | +40% Y/Y, +15% Q/Q |
| Operating cash flow | $4.36B | +36% Y/Y, -19% Q/Q |
| Capital expenditures | $502M | +55% Y/Y, +29% Q/Q |
| Cash and cash equivalents | $7.78B | +7.8% Q/Q |
| Cash and marketable securities | $15.8B | -0.6% Q/Q |
| Diluted shares | 3.98B | -0.4% Y/Y, -0.2% Q/Q |
What moved the numbers
- Product revenue: Networking $11.1B, up 43% Y/Y; Security $2.12B, up 7%; Collaboration $1.14B, up 8%; Observability $279M, up 2%. Services revenue was $3.85B, up 1%.
- Remaining performance obligations, representing contracted revenue, were $46.2B, up 8% Y/Y; product obligations rose 7% and services obligations 9%.
- GAAP-to-non-GAAP reconciliation: share-based compensation was the largest exclusion, totaling $909M. Acquisition-related intangible amortization was $413M.
- Cisco returned $3.7B to stockholders: $2.0B to repurchase 18M shares at an average $112.38 per share and $1.7B in dividends. It declared a $0.42-per-share quarterly dividend payable 1/20/2027 to holders of record 1/4/2027.
Other guidance (2)
| Metric | Period | Guidance |
|---|---|---|
| (Gains) and losses on investments (non-GAAP) | FY2027 | -$0.01 |
| Significant tax matters (non-GAAP) | FY2027 | $0.02 |
Figures extracted from the filings and checked against their text; changes and verdicts computed from them.
The summary is written by an AI model reading the filing.
Model 005 · prompt v192 · 2026-11-12 23:39:39Z