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Cisco (CSCO) Reports Q1 Earnings: What Key Metrics Have to Say

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Cisco Systems (CSCO - Free Report) reported $18.52 billion in revenue for the quarter ended October 2026, representing a year-over-year increase of 24.4%. EPS of $1.40 for the same period compares to $1.00 a year ago.

The reported revenue represents a surprise of +2.14% over the Zacks Consensus Estimate of $18.13 billion. With the consensus EPS estimate being $1.33, the EPS surprise was +5.26%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Cisco performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Revenue- Product: $14.67 billion compared to the $14.26 billion average estimate based on six analysts. The reported number represents a change of +32.4% year over year.
  • Revenue- Services: $3.85 billion versus the six-analyst average estimate of $3.84 billion. The reported number represents a year-over-year change of +1.2%.
  • Revenue- Product- Security: $2.12 billion compared to the $2.05 billion average estimate based on five analysts. The reported number represents a change of +7.1% year over year.
  • Revenue- Product- Observability: $279 million versus the five-analyst average estimate of $281.4 million. The reported number represents a year-over-year change of +1.8%.
  • Revenue- Product- Networking: $11.13 billion versus the five-analyst average estimate of $10.79 billion. The reported number represents a year-over-year change of +43.3%.
  • Revenue- Product- Collaboration: $1.14 billion compared to the $1.15 billion average estimate based on five analysts. The reported number represents a change of +7.7% year over year.
  • Non-Gaap Gross Margin- Services: $2.81 billion versus the five-analyst average estimate of $2.74 billion.
  • Non-Gaap Gross Margin- Product: $9.34 billion compared to the $9.13 billion average estimate based on five analysts.

View all Key Company Metrics for Cisco here>>>

Shares of Cisco have returned -11.3% over the past month versus the Zacks S&P 500 composite's -2.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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