Cisco Earnings: What More Could You Want? Raising Fair Value Estimate

Key Morningstar Metrics for Cisco Systems

• Fair Value Estimate: $120.00
• Morningstar Rating: ★★★
• Morningstar Economic Moat Rating: Wide
• Morningstar Uncertainty Rating: High

What We Thought of Cisco Systems’ Earnings

Cisco Systems CSCO beat its first-quarter guidance and raised its full-year outlook. Sales rose 24% year on year to $18.5 billion, with 340 basis points of annual operating margin expansion to 37.8%. Fiscal 2027 sales guidance of $75.3 billion, at the midpoint, rose by 3% from the previous quarter.

Why it matters: We like Cisco’s strong growth momentum, which is driven by both a growing artificial intelligence pipeline and a strong campus refresh cycle. We’re pleased with the material full-year guidance raise, which surpassed even our bullish expectations.

• Fiscal 2027 AI revenue guidance rose to $9 billion from $7.5 billion, and beat our $8.5 billion model. Cisco’s optics business is driving a significant portion of its AI growth. We like…