Cisco Systems reported a strong fiscal 2026 first quarter with revenue increasing 8% to $14.88 billion and non-GAAP earnings up 10% to $1 per share. Shares surged over 7% in after-hours trading to nearly $80 per share. Despite security business misses, Cisco raised its outlook above Street estimates, driven by AI infrastructure orders and a multi-billion-dollar networking refresh cycle. The company expects to recognize $3 billion from hyperscalers in fiscal year 2026. Networking revenue grew 15% to $7.77 billion, with strong orders in AI infrastructure and enterprise networking. Security revenue fell 2% but is expected to rebound. Cisco’s stock has a reasonable P/E multiple of about 19.5 times. Cisco forecasts second-quarter revenue of $15 billion to $15.2 billion and non-GAAP EPS of $1.01 to $1.03. Full-year revenue is expected to be $60.2 billion to $61 billion with an EPS forecast of $4.08 to $4.14. The revised outlook exceeds analyst estimates. (Source: CNBC)

Read more at CNBC: We’re increasing our Cisco Systems price target after an AI-fueled beat and raise