Cisco's Q1 revenue grew 8% year-on-year, AI infrastructure orders saw significant growth, annual performance outlook was raised, and shares rose over 7% after hours | Earnings Report News

Cisco releases impressive financial results, AI narrative accelerates, stock surges over 7% after hours. On November 12, Cisco released its financial report after the US market closed. First fiscal quarter revenue was $14.88 billion, up 8% year-on-year, and non-GAAP earnings per share were $1.00, up 10%, both exceeding Wall Street expectations. This also marks the fourth consecutive quarter of revenue growth for the company. Specific results include: Financial Performance: - Q1 revenue of $14.88 billion, up 8% year-on-year; non-GAAP earnings per share of $1.00, up 10% year-on-year, both exceeding the upper range of guidance; - Q2 revenue guidance of $15.0-15.2 billion, higher than market expectations of $14.6-14.7 billion; full-year revenue guidance raised to $60.2-61.0 billion; - GAAP gross margin was 65.5%, and non-GAAP operating margin was 34.4%, both above the guidance range. Core Business Progress: - Product orders grew 13% year-on-year; network product orders achieved double-digit growth for the fifth consecutive quarter; - AI infrastructure orders reached $1.3 billion, a significant acceleration compared to $800 million last quarter; - Campus networking business has begun a multi-year, multi-billion dollar upgrade cycle, with new generation products growing faster than before; - Security business revenue fell 2% to $1.98 billion, collaboration business fell 3% to $1.06 billion, both missing expectations. Development Strategy: - Focused on upgrading AI network devices, launched new Ethernet switches based on NVIDIA chips; - Strengthened software and security businesses via $28 billion acquisition of Splunk, seeking business diversification; - Focused on profitable growth, capital return, and strategic investment. As of Wednesday’s market close, Cisco's share price had risen 25% this year. Following the report, Cisco’s stock rose over 7% after hours. AI Narrative Accelerates This quarter’s biggest highlight is undoubtedly the AI infrastructure orders. AI infrastructure orders from hyperscale customers reached $1.3 billion, up significantly from $800 million last quarter. This proves Cisco is not absent from the AI wave. The company is upgrading its chips and network equipment to better connect server racks and data centers for handling complex AI tasks. Last month, Cisco launched new Ethernet switches based on NVIDIA chips, aiming to establish its position against competitors like Broadcom and HPE (which acquired Juniper). CFO Mark Patterson emphasized in the report: Our relevance in the AI space continues to grow, with multi-year, multi-billion dollar campus upgrade opportunities underway. The networking business truly performed strongly, with revenue up 15% to $7.77 billion, beating analysts’ estimates of $7.47 billion. Product orders rose 13% year-on-year, with network product orders seeing double-digit growth for five consecutive quarters. All technology categories in campus networking (switching, routing, wireless, and IoT) saw accelerated growth in Q1, and new generation solutions—including smart switches, secure routers, and WiFi 7 products—are growing faster than previous product launches. Risk Warning and Disclaimer The market carries risks and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investments made based on this article are at your own risk.