The 2026 Q1 earnings cycle is essentially over, though there is a handful of S&P 500 companies yet to report. The AI frenzy has continued to dominate sentiment throughout the period, with favorable demand trends surrounding the buildout leading to record results from several companies, including Cisco $CSCO Systems CSCO and NVIDIA NVDA.
Cisco Breaks Records
Cisco is positioned to provide critical AI infrastructure with an industry-leading networking portfolio, AI-native security solutions, and operating systems.
Sales of $15.8 billion set a record for the company and exceeded the high end of its prior guidance. The company noted broad-based, record-high demand for its technology, with overall product orders growing by a sizable 35% YoY. Importantly, data center switching orders grew 40% from the year-ago period, underpinning its important role amid the buildout.
Favorable EPS revisions for its current and next fiscal year have helped land it into a Zacks Rank #2 (Buy).
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NVIDIA Impresses Again
NVIDIA again posted robust growth in its latest release, with adjusted EPS of $1.87 more than doubling year-over-year alongside record sales of $81.6 billion that grew 85% from the year-ago period.
As expected, Data Center results throughout the period showed that everybody still wants their hands on the magical GPUs. Data Center sales of $75.2 billion again reflected a record, up 92% year-over-year.
Near-term EPS revisions continue to show bullishness thanks to the favorable environment, a trend that the company has enjoyed for quite a while now. While shares have slowed a bit relative to what we’ve seen over recent years, the reality remains that the company’s outlook remains robust.
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Bottom Line
Both companies above – Cisco Systems CSCO and NVIDIA NVDA – delivered robust earnings releases this cycle, delivering record results thanks to favorable trends stemming from the AI buildout.
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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
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