Is Cisco Systems a Buy After Its Latest Earnings Report?

• Cisco reported record Q1 FY2027 revenue of $18.5B (+24% YoY) and adjusted EPS of $1.40 (+39% YoY) • Raised full-year FY2027 guidance to $74.8-75.8B revenue and $5.47-5.53 adjusted EPS • Stock fell 6% despite beat-and-raise due to decelerating order growth and Nvidia CEO uncertainty Cisco delivered a beat-and-raise quarter with record $18.5B revenue (+24% YoY) and $5.6B adjusted net income (+39% YoY). The company raised full-year FY2027 guidance to $74.8-75.8B revenue and $5.47-5.53 adjusted EPS. However, shares fell 6% as order growth slowed to 21% from 35% in Q4, gross margins compressed, and uncertainty emerged around Nvidia's leadership transition. Despite near-term concerns, management remains confident in the multi-year AI networking opportunity.