Cisco Systems (CSCO) announced impressive fiscal first-quarter earnings that exceeded expectations, driven by robust demand for products related to artificial intelligence. This surge in orders led to a noteworthy boost in stock performance, with Cisco’s revenue outlook for the January quarter surpassing analysts’ forecasts.
The company shared its financial results after market close, revealing that for the quarter ending October 25, it achieved a 10% increase in earnings, reaching $1 per share on an adjusted basis. Revenue grew by 8%, amounting to $14.9 billion. Analysts had anticipated earnings of 98 cents per share and revenue of $14.78 billion.
A significant highlight was the demand for AI-focused networking solutions, with infrastructure orders surpassing $1.3 billion—up from $800 million in the previous quarter. The growing need for AI-centric data centers, driven by cloud computing providers, has spurred upgrades in Ethernet networking, showcasing a healthy market trend. Overall, product orders increased by 13%, improving from a 7% rise in the preceding quarter.
Cisco’s advancement in the AI sector is further propelled by its collaboration with Nvidia. The company is also venturing into the AI server market, entering into competition with established players like Dell.
Looking ahead, Cisco’s forecast for the first fiscal quarter ending in January anticipates sales of $15.1 billion, outpacing analyst estimates of $14.62 billion. CFO Mark Patterson emphasized the company’s ongoing relevance in AI and the opportunities presented by a multi-billion-dollar refresh of its networking product lineup. He noted, “Our focus remains on profitable growth, capital returns, and strategic investments that position us well for significant future opportunities.”
In after-hours trading, Cisco’s stock climbed more than 7%, reaching $79.16, following a strong upward trajectory of over 24% in 2025 prior to the earnings announcement. The stock’s technical profile features an entry point of 72.55, indicating it is currently within a buy zone.
Additionally, Cisco is evolving beyond its traditional focus on network switches and routers, seeking to bolster its software and service revenue through strategic acquisitions. The recent purchase of Splunk for $25 billion signifies a significant move into the realm of data analytics and cybersecurity.
In terms of performance metrics, Cisco’s Composite Rating is 89 out of a possible 99, reflecting strong financial health. The stock has also received a B-minus in its Accumulation/Distribution Rating, indicating a trend toward stable demand as assessed by trading volume and price movements.
As the landscape of technology continues to evolve, Cisco’s commitment to innovation and strategic growth in AI and cybersecurity positions it favorably for future success.
