Cisco Raises Full-Year Outlook After Beating Quarterly Estimates

Cisco beat market estimates for its first-quarter results and raised full-year guidance amid a networking super-cycle, while analysts highlighted product order growth and potential margin expansion.

Bank of America expects growth to continue over the next few quarters, pointing to 21% year-over-year growth in product orders and demand across key product categories.

J.P. Morgan sees fiscal 2027 gross margin slightly below 65% and operating margin around 36%. It expects pricing to offset memory costs and operating leverage to improve margins.

Analysts also cited moderating product orders excluding hyperscalers, slower campus order growth, tougher comparisons and procurement changes. Morgan Stanley is seeking clearer signs that Cisco's enterprise growth can last.