Cisco opened fiscal 2026 with an AI-driven networking rebound, reporting strong Q1 growth in high-performance switching, routing, optics, and data center infrastructure. Networking product orders rose in the high teens, marking the fifth consecutive quarter of double-digit growth, driven by hyperscaler deployments of Cisco Silicon One systems, coherent pluggables from Acacia, and early traction for the new N9100 switch based on NVIDIA’s Spectrum-X silicon. Cisco booked $1.3 billion in AI infrastructure orders from hyperscalers—its strongest quarter yet—with balanced demand across back-end cluster fabrics and front-end data center networking.
The company also highlighted a major multi-year campus networking refresh, with switching, routing, wireless and IoT all accelerating. Next-generation campus platforms—including smart switches, secure routers, and Wi-Fi 7—are ramping faster than any previous product cycle. Cisco sees tens of billions of dollars in pre-Cat9K installed gear nearing end of support, creating sustained upgrade demand as customers embed security and AI-readiness deeper into the network.
Cisco also expanded its AI-native software and edge capabilities. New offerings include the 8K router powered by the Silicon One P200 for AI scale-across architectures, Cisco Data Fabric for Splunk-driven machine data operations, and Cisco Unified Edge for real-time inferencing at distributed sites. With neocloud, sovereign, and enterprise AI networking orders topping $200 million in Q1, Cisco now tracks a $2B+ pipeline outside the hyperscaler segment.
Key Networking & Infrastructure Highlights (from slides)
- $1.3B in Q1 AI infrastructure orders from hyperscalers; expecting $3B+ in FY26 AI infrastructure revenue
- Four new hyperscaler design wins; each hyperscaler growing triple-digits YoY in AI networking
- Balanced hyperscaler demand across Silicon One systems and optics; Acacia coherent pluggables saw strong growth
- High-teens Networking order growth, fifth straight quarter of double-digit performance
- DC switching orders up, lapping strong compares; early traction for N9100 with NVIDIA Spectrum-X
- Campus networking acceleration: switching, routing, wireless & IoT all up; smart switches and Wi-Fi 7 ramping fast
- $200M+ in AI networking orders from neocloud, sovereign, and enterprise customers
- Cisco Silicon One momentum: P200 announced for AI scale-across; on track to ship 1-millionth chip by Q2
- Comprehensive adoption of Silicon One architecture across Cisco systems expected by FY29
- Significant step-up in inference-driven traffic patterns expected with shift from chatbot to agentic AI
- Security positioned as foundational to AI networking, with deep integration across switches, silicon, and software
Q1 FY26 Results
- Q1 revenue: $14.9B, up 8% YoY
- Networking revenue: $7.77B, up 15%
- Product orders: up 13% overall; Service Provider & Cloud up 45%
- Non-GAAP EPS: $1.00, up 10%
- RPO: $42.9B, with product RPO up 10%
- Returned $3.6B to shareholders
“The widespread demand for our technologies highlights the critical role of secure networking as customers move quickly to unlock the potential of AI,” said Chuck Robbins, Cisco’s chair and CEO.
🌐 Analysis
Cisco’s quarter reflects accelerating investment in AI cluster fabrics, optical interconnects, and security-embedded campus infrastructure. The balanced mix of Silicon One systems and Acacia coherent optics matches current hyperscaler architectures that favor power-efficient scale-out and scale-across topologies. Rising inference workloads—and the transition to agentic AI—are set to increase east-west traffic volumes, making 800G/1.6T optics, next-gen silicon, and secure, programmable switching foundational for the next upgrade cycle. Cisco’s focus on unified silicon, secure networking, and AI-operated software aligns with broader industry moves by NVIDIA, Broadcom, Arista, Juniper, and HPE, all targeting the same AI-driven fabric modernization wave.
