Cisco Systems, Inc. has reported its latest financial results for the first quarter of fiscal 2026 in its Form 10-Q. The company's revenue for the quarter was $14.88 billion, an 8% increase from the same period in fiscal 2025, driven by growth in Networking, particularly in AI Infrastructure and Campus Networking solutions. Product revenue increased by 10%, while services revenue increased by 2%. Total software revenue stood at $5.7 billion, a 3% increase, with total subscription revenue up 2%.
The company's gross margin percentage was 65.5%, a slight decrease of 0.4 percentage points from the previous year. Operating income as a percentage of revenue increased by 5.6 percentage points, reaching 22.6%. Net income for the quarter was $2.86 billion, a 5% increase from the same period in fiscal 2025. Earnings per share—diluted increased by 6% to $0.72.
From a geographic perspective, revenue from the Americas increased by $0.7 billion, EMEA revenue increased by $0.2 billion, and APJC revenue increased by $0.1 billion. The company also experienced product revenue growth across all customer markets, with a 10% increase driven by Networking and Observability solutions, partially offset by declines in Collaboration and Security.
In terms of financial measures, Cisco reported cash and cash equivalents and investments of $15.74 billion, remaining performance obligations of $42.87 billion, and total debt of $28.09 billion. The company also repurchased $2.00 billion worth of common stock under its stock repurchase program and paid dividends amounting to $1.62 billion.
The company discussed its strategy and priorities, emphasizing its focus on securely connecting everything to enable businesses and organizations to achieve their strategic objectives in a digital-first world. Additionally, Cisco highlighted its ongoing investment in key priority areas to drive long-term profitable growth and deliver innovation across its technologies.
In terms of critical accounting estimates, Cisco discussed revenue recognition, inventory valuation, liability for purchase commitments with contract manufacturers and suppliers, loss contingencies, and the valuation of goodwill and purchased intangible assets as significant factors affecting its financial statements.
The company's financial results indicate strong performance and growth across key segments, with a focus on innovation and strategic investment to drive future success. The market has reacted to these announcements by moving the company's shares -0.2% to a price of $77.625. If you want to know more, read the company's complete 10-Q report here.
