Cisco Systems reported first quarter fiscal 2026 earnings on November 12, 2025, with revenue of $14.9 billion, up 8% year over year. GAAP EPS was $0.72, up 6% year over year, while non-GAAP EPS was $1.00, up 10% year over year. Both exceeded guidance ranges. Product orders increased 13% year over year, with AI Infrastructure orders from hyperscaler customers totaling $1.3 billion. The company announced a major multi-year, multi-billion-dollar campus networking refresh cycle underway, with accelerated order growth across switching, routing, wireless, and IoT technologies. However, on February 18, 2026, Erste Group downgraded Cisco from Buy to Hold, citing concerns over declining gross margins. The firm predicted rising DRAM and memory component costs would lower next quarter's gross margin to 66%, with margin pressures expected to continue long term.
Read full analysisCisco Systems reported first quarter fiscal 2026 earnings on November 12, 2025, with revenue of $14.9 billion, up 8% year over year. GAAP EPS was $0.72, up 6% year over year, while non-GAAP EPS was $1.00, up 10% year over year. Both exceeded guidance ranges. Product orders increased 13% year over year, with AI Infrastructure orders from hyperscaler customers totaling $1.3 billion. The company announced a major multi-year, multi-billion-dollar campus networking refresh cycle underway, with accelerated order growth across switching, routing, wireless, and IoT technologies. However, on February 18, 2026, Erste Group downgraded Cisco from Buy to Hold, citing concerns over declining gross margins. The firm predicted rising DRAM and memory component costs would lower next quarter's gross margin to 66%, with margin pressures expected to continue long term.
Cisco Systems is the world's largest networking equipment maker, providing routers, switches, and security infrastructure that underpin enterprise and data center connectivity globally. The company reported record Q2 fiscal 2026 revenue of $15.3 billion with $2.1 billion in AI infrastructure orders, but a 12% post-earnings selloff on February 12 over rising memory chip costs still dominates the near-term narrative. The stock continues consolidating roughly 8-9% below pre-earnings levels, with Wall Street's average price target of $89.55 implying significant upside.