Cisco said total revenue for Q1 2026 increased 8% compared with the prior-year quarter, with product revenue up 10% and services revenue up 2%. The company cited revenue growth in Networking, particularly in AI Infrastructure and Campus Networking solutions, as drivers of the increase.

1. 01

   Cisco said total revenue for Q1 2026 increased 8% compared with the prior-year quarter, with product revenue up 10% and services revenue up 2%. The company cited revenue growth in Networking, particularly in AI Infrastructure and Campus Networking solutions, as drivers of the increase.

2. 02

   Cisco said total gross margin for Q1 2026 decreased 0.4 percentage points and product gross margin decreased 0.6 percentage points. Operating income as a percentage of revenue increased 5.6 percentage points, driven by lower restructuring and other charges and revenue growth, the company said.

3. 03

   Cisco cited cash dividends of $1.6 billion, repurchases of common stock of $2.0 billion, and capital expenditures of $0.3 billion as the primary drivers of the net decrease in cash and cash equivalents and investments in Q1 2026. The company said these uses of cash were partially offset by net cash provided by operating activities of $3.2 billion and the release of approximately $0.6 billion of restricted cash previously held in escrow.

4. 04

   Cisco said Networking revenue for Q1 2026 increased 15% ($1.0 billion) and Observability revenue increased 6%, while Collaboration revenue decreased 3% and Security revenue decreased 2%. The company cited a shift in how customers consumed Splunk offerings, moving from fewer on-premise deals to more cloud subscriptions, as one factor in the Security decline.

Key figures

Quarter ended October 25, 2025

Revenue

$14.9B

Operating income

$3.4B

Net income

$2.9B

EPS

$0.72

Gross profit

$9.7B

Operating cash flow

$3.2B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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