Cisco Systems Inc (NASDAQ:CSCO) stock rose 4.62% (As on November 13, 12:22:58 AM UTC-4, Source: Google Finance) after the company reported fiscal first-quarter results that exceeded Wall Street’s estimates as demand for the networking equipment maker’s products grew. The company also raised its annual profit and revenue forecast on robust cloud demand. Product sales grew 10% from a year earlier to $11.08 billion, driven by a double-digit gain in networking. The services segment rose 2% to $3.81 billion. The company secured more than $2 billion in AI-related orders for fiscal 2025, nearly all from hyperscalers, and expects $3 billion in AI infrastructure revenue in fiscal 2026. Artificial intelligence infrastructure orders from hyperscaler customers totaled $1.3 billion, reflecting “significant” growth acceleration.

CSCO in the first quarter of FY26 has reported the adjusted earnings per share of $1, beating the analysts’ estimates for the adjusted earnings per share of 98 cents. The company had reported the adjusted revenue growth of 8 percent to $14.88 billion in the first quarter of FY26, beating the analysts’ estimates for revenue of $14.78 billion. Revenue by geographic segment was: Americas up 9%, EMEA up 5%, and APJC up 5%. Product revenue performance reflected growth in Networking up 15% and Observability up 6%. Security was down 2% and Collaboration was down 3%. On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 68.1%, 67.2%, and 70.7%, respectively, as compared with 69.3%, 68.9%, and 70.3%, respectively, in the first quarter of fiscal 2025. Total gross margins by geographic segment were: 66.8% for the Americas, 71.9% for EMEA and 66.9% for APJC. Non-GAAP operating income was $5.1 billion, up 8%, with non-GAAP operating margin at 34.4%.

Additionally, the company has declared a quarterly dividend of $0.41 per common share to be paid on January 21, 2026, to all stockholders of record as of the close of business on January 2, 2026.

Cisco now forecasts fiscal 2026 adjusted EPS of $4.08 to $4.14, compared with the previous outlook for $4 to $4.06. Revenue is pegged between $60.2 billion and $61 billion from the prior $59 billion to $60 billion range. Analysts polled by FactSet expect normalized EPS of $4.04 and revenue of $59.64 billion.

For the second quarter, Cisco projects adjusted EPS of $1.01 to $1.03 and revenue between $15 billion and $15.2 billion. The consensus estimates are $0.98 and $14.62 billion, respectively.