Earnings
Cisco Lifts Fiscal 2027 Revenue Outlook to as Much as $75.8 Billion and Applied Materials Guides Above Estimates
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Both companies reported after the bell on Thursday, pointing to strong AI-related demand; Applied Materials rose about 3% in extended trading while Cisco was flat.
By Noris Ortiz ·
Cisco Systems and Applied Materials both reported results after the close on Thursday, Nov. 12, and each pointed to continued demand tied to artificial intelligence spending, even as Nvidia's leadership shake-up rattled chip stocks during the regular session [1][2][3].
Cisco said revenue for its fiscal first quarter, which ended Oct. 24, was $18.5 billion, up 24% from a year earlier, with product revenue up 32% and services up 1% [1]. Non-GAAP earnings per share were $1.40, up 40%, and GAAP earnings per share were $1.14 [1]. Reuters said the revenue figure topped the average analyst estimate of $18.14 billion, compiled by LSEG [2].
The more closely watched piece was the outlook. Cisco raised its fiscal 2027 revenue forecast to $74.8 billion to $75.8 billion from $72.2 billion to $73.4 billion, and lifted its non-GAAP earnings forecast to $5.47 to $5.53 per share [1][2]. It also raised its expectation for AI infrastructure revenue from hyperscalers to $9 billion in fiscal 2027 from $7.5 billion, which the company said is more than double the fiscal 2026 total [1][2]. For the second quarter it guided to revenue of $18.0 billion to $18.2 billion and non-GAAP earnings of $1.34 to $1.36 per share [1]. Chief executive Chuck Robbins said the company is in "the very early stages of a multi-year networking supercycle" [1]. Remaining performance obligations, a measure of contracted future revenue, were $46.2 billion, up 8%, and the board declared a quarterly dividend of 42 cents a share [1]. Reuters said Cisco shares were little changed in extended trading [2].
Applied Materials, which supplies wafer-fabrication equipment to chipmakers, reported fourth-quarter revenue of $10.41 billion, above the $10.30 billion analyst average, according to Reuters [3]. InvestingLive reported adjusted earnings of $4.16 a share against an expected $4.06 [4]. The company forecast first-quarter revenue of about $11.10 billion, plus or minus $500 million, compared with an estimate of $10.89 billion, and Reuters said the shares rose about 3% in extended trading [3]. InvestingLive reported earnings guidance of $4.15 to $4.55 a share against a consensus of $4.21, and noted that the low end of the ranges sits below consensus, which leaves room for a wide outcome [4].
Why it matters: both companies sell into the buildout of AI data centers, one through networking gear and the other through the machines that make the chips. Their guidance offers a read on whether spending plans survived last week's selloff in AI stocks. The setup during the day was mixed. Yahoo Finance reported that Broadcom and AMD rose as investors bet Nvidia's troubles could benefit rivals, while the 10-year Treasury yield rose to about 5.10%, a level that pressures valuations [5].
What to watch: how the two stocks open on Friday after the muted and modestly positive after-hours reactions, whether analysts lift estimates for AI networking and chip equipment, and Nvidia's results on Tuesday, Nov. 17, which will give another view of data center demand [5].
Sources:
[1] Cisco Systems, "Cisco Reports First Quarter Earnings" (Form 8-K, Exhibit 99.1), November 12, 2026. https://www.sec.gov/Archives/edgar/data/0000858877/000085887726000170/exhibit991pressrelease-q1f.htm
[2] Reuters (via 104.9 The Wolf), "Cisco raises annual revenue forecast on strong AI networking demand", November 12, 2026. https://www.1049thewolf.com/2026/11/12/cisco-raises-annual-revenue-forecast-on-strong-ai-networking-demand/
[3] Reuters (via 104.9 The Wolf), "Applied Materials forecasts quarterly revenue above estimates on strong AI chip demand", November 12, 2026. https://www.1049thewolf.com/2026/11/12/applied-materials-forecasts-quarterly-revenue-above-estimates-on-strong-ai-chip-demand/
[4] investingLive, "Applied Materials beats on Q4 and guides above forecasts as chip equipment demand holds", November 12, 2026. https://investinglive.com/stocks/applied-materials-beats-on-q4-and-guides-above-forecasts-as-chip-equipment-demand-holds
[5] Yahoo Finance, "Stock market today: Dow, S&P 500, Nasdaq slip as Nvidia stock falls on CEO exit, bond yields rise", November 12, 2026. https://finance.yahoo.com/markets/live/stock-market-today-thursday-november-12-sp-500-nasdaq-dow-nvidia-invest-110027430.html
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.