Cisco (CSCO) official guidance

You should, though, expect orders to be meaningfully higher, I would say, in FY 2027 than they were in FY 2026.

We are assuming a non-GAAP effective tax rate of approximately 18.5%.

Non-GAAP earnings per share is expected to range from $5.05 to $5.11.

Non-GAAP earnings per share is expected to range from $1.32 to $1.34.

We anticipate non-GAAP gross margin to be in the range of 65%-66%.

So you should expect a slight gross margin headwind as we move through FY 2027 as we address these very high growth opportunities.

Non-GAAP operating margin is expected to be in the range of 35.5%-36.5%.

Operating margin is really a better indicator of our profitability, as our guide implies operating margin of about 35% for the full year FY 2027, which would be a high watermark for us as a company.

Overall, our hyperscale business continues to show great momentum with AI infrastructure revenue projected to grow to $7.5 billion in fiscal year 2027, supported by demand growth and market share gains.

We expect revenue to be in the range of $72.2 billion to $73.4 billion.

We expect revenue to be in the range of $18 billion to $18.2 billion.

With the $7.5 billion in hyperscale revenue, if you kind of back that out, you get to the core business growing at about 10%, which is obviously significantly faster than that investor day that we have done awfully long ago at this point.

I think overall, though, security is probably mid-to-high single digits in Q1 and improving as we go through the year.

If you look at security and observability, I would think about those going from kind of low single-digit growth in full year FY 2026 to high single-digit growth in full year FY 2027, and we can talk more about the shape of that maybe later in the call.

Services, I also think you are going to see improvement there as well and turning positive in FY 2027 and for the full year, seeing gradual improvement as we move through the year, and then for the full year, kind of being in that low single-digit growth range.

Our FY 2027 guidance assumes an effective tax provision rate of approximately 14.5% for GAAP and approximately 18.5% for non-GAAP results.

Our Q1 FY 2027 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 18.5% for non-GAAP results.

Our FY 2027 guidance assumes an effective tax provision rate of approximately 14.5% for GAAP and approximately 18.5% for non-GAAP results.

Cisco estimates that GAAP EPS will be $4.00 to $4.06 for fiscal 2027.

Cisco estimates that GAAP EPS will be $1.08 to $1.10 for the first quarter of fiscal 2027.

| GAAP | 63% - 64% | 28% - 29% | $1.08 - $1.10 |

| GAAP | 63% - 64% | 28% - 29% | $1.08 - $1.10 |

Given this strong demand, we now expect to take AI infrastructure orders of approximately $9 billion from hyperscalers in FY 2026, 4.5x our FY 2025 total.

We expect the mix of cloud business to continue to grow in Q4 while we are on track to exceed our target of 1,000 new customer logos for Splunk in fiscal year 2026.

We are assuming a non-GAAP effective tax rate of approximately 19%.

Non-GAAP earnings per share is expected to range from $4.27-$4.29.

Non-GAAP earnings per share is expected to be in the range from $1.16-$1.18.

We anticipate non-GAAP gross margin to be in the range of 65.5%-66.5%.

Non-GAAP operating margin is expected to be in the range of 34%-35%.

As part of our announced restructuring plan, we expect to recognize up to $1 billion of pre-tax charges, with $450 million to be re-recognized in the Q4 FY 2026 and the remainder during FY 2027.

As part of our announced restructuring plan, we expect to recognize up to $1 billion of pre-tax charges, with $450 million to be re-recognized in the Q4 FY 2026 and the remainder during FY 2027.

We expect to recognize approximately $4 billion in AI infrastructure revenue from hyperscalers in fiscal year 2026.

We expect revenue to be in the range of $62.8 billion-$63 billion.

For fiscal Q4, our guidance is as follows: We expect revenue to be in the range of $16.7 billion-$16.9 billion.

I was just saying that, you know, that 4%-6%, that absent AI hyperscale opportunity that you could expect for us to grow in line with that.

Our FY 2026 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 19% for non-GAAP results.

Our Q4 FY 2026 guidance assumes an effective tax provision rate of approximately 16% for GAAP and approximately 19% for non-GAAP results.

Our FY 2026 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 19% for non-GAAP results.

Cisco estimates that GAAP EPS will be $3.16 to $3.21 for fiscal 2026.

Cisco estimates that GAAP EPS will be $0.80 to $0.85 for the fourth quarter of fiscal 2026.

| GAAP | 63.5% - 64.5% | 23% - 24% | $0.80 - $0.85 |

| GAAP | 63.5% - 64.5% | 23% - 24% | $0.80 - $0.85 |

Cisco expects to recognize approximately $450 million of these charges in the fourth quarter of fiscal 2026 with the remaining amount expected to be recognized during fiscal 2027.

We are assuming a non-GAAP effective tax rate of approximately 19%.

Non-GAAP earnings per share is expected to range from $1.02-$1.04.

We anticipate non-GAAP gross margin to be in the range of 65.5%-66.5%.

Non-GAAP operating margin is expected to be in the range of 33.5%-34.5%.

For fiscal Q3, our guidance is as follows. We expect revenue to be in the range of $15.4 billion-$15.6 billion.

Our Q3 FY 2026 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for non-GAAP results.

Cisco estimates that GAAP EPS will be $0.73 to $0.77 for the third quarter of fiscal 2026.

| GAAP | 63% - 64% | 24% - 25% | $0.73 - $0.77 |

| GAAP | 63% - 64% | 24% - 25% | $0.73 - $0.77 |

We expect to ship our one millionth chip in Q2 of fiscal year 2026.

We are assuming a non-GAAP effective tax rate of approximately 19%.

Non-GAAP earnings per share is expected to range from $1.01-$1.03.

We anticipate non-GAAP gross margin to be in the range of 67.5%-68.5%.

Non-GAAP operating margin is expected to be in the range of 33.5%-34.5%.

We expect revenue to be in the range of $15 billion-$15.2 billion.

Our Q2 FY 2026 guidance assumes an effective tax provision rate of approximately 16% for GAAP and approximately 19% for non-GAAP results.

Cisco estimates that GAAP EPS will be $0.69 to $0.74 for the second quarter of fiscal 2026.

| GAAP | 65% - 66% | 22.5% - 23.5% | $0.69 - $0.74 |

| GAAP | 65% - 66% | 22.5% - 23.5% | $0.69 - $0.74 |