Cisco Reports Record Q1 2027 Results Driven by Agentic AI Infrastructure Demand
Cisco Systems (CSCO) delivered a robust first quarter for fiscal year 2027, reporting revenue of $18.5 billion, a 24% increase year-over-year. The growth was primarily fueled by massive infrastructure investments in agentic AI and networking, with networking revenue surging 43% to reach $11.1 billion. Total product orders also saw significant momentum, rising 21% across all geographies. Driven by increased visibility into hyperscaler deployments, Cisco raised its fiscal year 2027 AI infrastructure revenue guidance to $9 billion from an earlier target of $7.5 billion. While hardware-heavy growth led to a slight compression in gross margins due to elevated memory and optics costs, the company achieved an all-time high non-GAAP operating margin of 37.8%. Management expects hyperscale revenue to double as a percentage of total mix over the coming year.
Tickers: $CSCO
Topics: AI infrastructure earnings report financial guidance revenue growth