On November 12, 2025 (U.S. time), Cisco Systems, Inc. (CSCO.US) showed strong performance in the U.S. stock market, closing at $73.96, up by $2.25, a 3.14% increase. Over the past five trading days, the stock has gained more than 4%, rising from about $70.50 to nearly $74, reaching a new peak. On the day, the trading volume reached 57.59 million shares, with a transaction value of about $4.23 billion, indicating active market buying. This recent surge was primarily driven by the company’s quarterly earnings exceeding expectations, as well as accelerated growth in AI-related businesses.

(Image Source: uSMART HK app)

Strong Earnings: Revenue and Profit Exceed Expectations

Cisco released its first-quarter earnings for fiscal year 2026 (ending October 25, 2025) after market close, with key financial metrics significantly surpassing market expectations. The company’s revenue for the quarter was $14.88 billion, an 8% year-over-year increase. Non-GAAP earnings per share (EPS) were $1.00, up 10% from the previous year, exceeding the upper end of the company’s guidance range. This marks Cisco's fourth consecutive quarter of year-over-year revenue growth.

(Data Source: Cisco Systems FY2025 Q1 earnings, public earnings data compiled)

AI Infrastructure Orders Soar, Networking Business Becomes Growth Engine

Cisco’s earnings report highlighted that demand for AI infrastructure has become a key driver of growth this quarter. Orders for AI infrastructure from hyperscale cloud computing customers reached $1.3 billion, significantly up from $800 million in the previous quarter, setting a new company record.

The networking business performed particularly well, with revenue growing 15% year-over-year to $7.77 billion, exceeding analyst expectations of $7.47 billion. Overall product orders grew 13%, with routers, switches, wireless, and IoT segments all experiencing accelerated expansion. The company stated that, with the rise in demand for AI training and data center upgrades, enterprises are initiating multi-year network overhauls, which will provide continued growth momentum in the upcoming quarters.

Software and Security Business Under Pressure, Splunk Acquisition Key to Transformation

Despite strong core business performance, Cisco's security and collaboration segments are still under pressure. The earnings report showed that security business revenue declined 2% year-over-year to $1.98 billion, while collaboration revenue fell 3% to $1.06 billion. Management noted that adjustments in IT budgets and extended procurement cycles by some customers have impacted short-term revenues.

To address these structural challenges, Cisco is accelerating its transformation towards software and platforms. The company has completed its $28 billion acquisition of data analytics firm Splunk, aiming to integrate security and monitoring capabilities and increase the proportion of recurring subscription revenue in the long term.

Outlook: AI and Network Upgrades Build New Growth Trajectory

Cisco expects second-quarter fiscal year 2026 revenue to reach between $15.0 billion and $15.2 billion, with adjusted EPS in the range of $1.01 to $1.03, all exceeding market expectations. The company will continue to focus on innovation in AI networking equipment, expanding its software ecosystem, and delivering capital returns to achieve steady growth.

Analysts point out that the demand for AI computing power is driving a wave of network infrastructure upgrades, which will become the main industry trend in the coming years. With its strong enterprise customer base and hardware technology accumulation, Cisco is well-positioned to play a significant role in this AI-driven network reconstruction.

How to Buy Cisco on uSMART

After logging into the uSMART HK app, click the “Search” button in the top-right corner of the page, enter the ticker code (CSCO.US), and navigate to the details page to view transaction details and historical trends. Click the “Trade” button in the bottom-right corner, select the trade type, and submit your order after filling in the transaction conditions.

(Image Source: uSMART HK app)