Earnings · $CSCO
Cisco Reports Thursday With AI Orders and an $18 Billion Revenue Forecast Setting a High Bar
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The networking giant guided to $18.0 billion to $18.2 billion for the quarter ended October 24; investors will look at AI orders and margins.
By Noris Ortiz ·
Cisco Systems will report fiscal first-quarter 2027 results on Thursday, November 12, after the market close, with a conference call at 4:30 p.m. ET, the company said. The quarter ended Saturday, October 24 [1].
The report arrives against guidance that the company issued in August and that was well above what analysts had expected at the time. In its fiscal fourth-quarter release on August 12, Cisco forecast first-quarter revenue of $18.0 billion to $18.2 billion, GAAP earnings of $1.08 to $1.10 per share and non-GAAP earnings of $1.32 to $1.34 per share [2]. According to Investing.com, published on Yahoo Finance, the analyst averages then stood at $16.66 billion in revenue and $1.14 in adjusted earnings per share [3].
For the full fiscal 2027, Cisco guided to revenue of $72.2 billion to $73.4 billion and non-GAAP earnings of $5.05 to $5.11 per share [2]. The company also said it expects about $7.5 billion of AI infrastructure revenue in the year [2].
The AI business is the main reason the numbers have been scrutinized. Cisco said it booked about $4 billion of AI infrastructure orders from hyperscale customers in the fourth quarter, bringing the fiscal 2026 total to $9.3 billion. Fourth-quarter revenue was $17.3 billion, up 18% from a year earlier, and non-GAAP earnings were $1.22 per share [2]. Investing.com reported that total product orders rose 35% and networking orders rose 40% in that quarter [3].
The stock's reaction to the August report shows how demanding expectations have become. Shares fell more than 9% in early trading after the results, even though the outlook beat estimates, because the stock had already climbed more than 60% for the year, Investing.com reported [3]. Barclays said the outlook was strong but the bar was high, and it suspected that AI-related dilution could be weighing on product gross margins [3].
That points to the questions likely to matter on Thursday. One is whether revenue lands inside or above the $18.0 billion to $18.2 billion range. A second is how much of the AI order flow converts to revenue, given the $7.5 billion target for the fiscal year. A third is gross margin, since Barclays flagged it as a possible pressure point. The company's guidance for the second quarter will also shape how the market judges whether the full-year ranges remain within reach.
Because the guidance was set above consensus, a result in line with the forecast may not be enough on its own for a positive reaction. As the August episode shows, a stock can fall on a better-than-expected outlook when positioning is already stretched. The reverse can also hold: a clean beat with stable margins and higher AI orders would address the concerns that analysts raised after the last report.
Cisco's own release and the filing that accompanies it, including the non-GAAP reconciliation, will be the primary documents for checking the figures once they are published on Thursday.
Sources:
[1] Cisco Systems, "Cisco Schedules Conference Call for Q1 Fiscal Year 2027 Financial Results", November 3, 2026. https://investor.cisco.com/news/news-details/2026/Cisco-Schedules-Conference-Call-for-Q1-Fiscal-Year-2027-Financial-Results/default.aspx
[2] Cisco Systems, "Cisco Reports Fourth Quarter and Fiscal Year 2026 Earnings", August 12, 2026. https://www.sec.gov/Archives/edgar/data/0000858877/000085887726000106/exhibit991pressrelease-q4f.htm
[3] Investing.com via Yahoo Finance, "Cisco shares fall 9% as solid AI-fueled outlook faces lofty expectations", August 12, 2026. https://finance.yahoo.com/technology/ai/articles/cisco-forecasts-strong-fiscal-2027-204534530.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.