‘Still Early In Networking Super Cycle’: Cisco Delivers Beat And Raise Quarter But Shares Drop Amid Nvidia-Linked Volatility

• Cisco reported first-quarter revenue of $18.5 billion, beating analysts’ expectations of $18.14 billion.

• “These broad-based results support our view that we are in the early stages of a multiyear, multibillion-dollar networking super cycle,” CEO Chuck Robbins said.

• CSCO shares dipped marginally, but retail sentiment climbed higher.

Cisco Systems, Inc. (CSCO) reported better-than-expected fiscal first-quarter results and raised its full-year forecasts on Thursday, signaling strong demand for its networking gear from AI data centers, with CEO Chuck Robbins saying the market is in the early stages of a “networking super cycle.”

However, CSCO shares fell 0.5% in overnight trading, leaving retail traders confused. Some blamed the market volatility linked to the resignation of Nvidia CEO Jensen Huang and expected CSCO to bounce back in due course.

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Cisco Sees ‘Networking Supercycle’

“These broad-based results support our view that we are in the early stages of a multiyear, multibillion-dollar networking super cycle, as I referenced earlier, and we are executing with focus and urgency to capture this incremental opportunity,” Chuck Robbins said on the analyst call.

“Overall, our hyperscaler business continues to show strong momentum with AI infrastructure revenue projected to grow to $9 billion in fiscal year ’27, more than double fiscal year ’26 levels.”

CFO Mark Patterson said the company expected business from hyperscaler customers to account for 12% of total sales in the current fiscal year, up from 6% in FY2026.

Cisco sells networking and security technology to a range of customers, and its share in the AI and data center market is growing as hyperscalers buy more of its high-speed switches and optical systems to connect expanding AI workloads.

Cisco’s Q1 Performance

Cisco reported first-quarter revenue of $18.5 billion, beating analysts’ expectations of $18.14 billion. Adjusted profit was $1.40 ⁠per share, also above estimates of $1.33.

Cisco said it expects fiscal 2027 revenue in the range of $74.8 billion to $75.8 billion, up from its previous forecast of $72.2 billion to $73.4 billion. The company raised its view of AI infrastructure revenue from hyperscalers to $9 billion, up from $7.5 billion earlier. The segment generated $4 billion in revenue a year earlier.

Cisco’s adjusted gross margin dipped to 65.6% in Q1 from 68.1% a year earlier.

Retail View On CSCO