Cisco Raises Its Forecast and Applied Materials Posts Record Sales as AI Spending Shows No Sign of Slowing
Cisco's quarterly revenue jumped 24% and its AI-infrastructure target rose to $9 billion, while Applied Materials sold a record $10.41 billion of chip equipment. Shares barely moved after hours.
Friday, November 13, 2026/2 min read
Two of the companies that sell the plumbing of the artificial-intelligence boom reported on Thursday after the closing bell, and both told investors the spending is still accelerating. Cisco said first-quarter revenue rose 24 percent to $18.5 billion and lifted its full-year forecast. Applied Materials reported record fourth-quarter sales of $10.41 billion, up 53 percent, and guided higher again.
Neither stock made a dramatic move. Reports of the after-hours reaction differed by a few tenths of a percent, a sign of a market that had already priced in strength and was watching Friday's open for the real verdict.
What did Cisco report for its first quarter?
Cisco's quarter ended on 24 October. Revenue of $18.5 billion and adjusted earnings of $1.40 a share both beat the roughly $18.14 billion and $1.33 that analysts expected, according to a Benzinga write-up on TradingView. MarketBeat's summary on Yahoo Finance put networking revenue up 43 percent, product orders up 21 percent and adjusted gross margin at 65.6 percent, down 250 basis points from a year earlier.
The forecast matters more than the quarter. Cisco raised its fiscal 2027 revenue range by $2.5 billion to $74.8 billion to $75.8 billion and adjusted earnings to $5.47 to $5.53 a share. It also lifted its expected revenue from AI infrastructure sold to the largest cloud companies to $9 billion from $7.5 billion. Chief executive Chuck Robbins described the opportunity as an early-stage, multiyear networking cycle.
How strong were Applied Materials' results?
The chip-equipment maker's earnings release, filed with the Securities and Exchange Commission, showed non-GAAP earnings of $4.16 a share and a non-GAAP gross margin of 50.6 percent. Semiconductor Systems, the unit that sells the machines used to make chips, brought in $7.996 billion, up from $4.879 billion a year earlier, and Applied Global Services added $1.896 billion. Fiscal 2026 revenue reached a record $34.45 billion, up 21 percent.
For the current quarter Applied guided to revenue of $11.1 billion, give or take $500 million, and adjusted earnings of $4.35 a share, give or take 20 cents. Chief executive Gary Dickerson said AI continues to fuel strong incremental demand for semiconductors. StockTitan's breakdown of the filing also lists a $253 million settlement with the US Commerce Department's Bureau of Industry and Security booked during the year.
How did Cisco and Applied Materials shares react?
Both had traded through Thursday's Nvidia-driven turbulence, with Cisco closing around $102, per the Benzinga write-up. After hours, MLQ's report had Applied up about 1.5 percent and Cisco higher, while StockTitan's later update showed Applied up 0.76 percent and Cisco slightly lower at 7:59 pm Eastern. The same page showed Cerebras, which reported record third-quarter revenue of $210.8 million, up 55 percent, trading about 18 percent higher.
What should investors watch next?
The read-through is to the rest of the AI supply chain. Cisco's raised AI forecast and Applied's guidance above the $10.89 billion analysts expected both point to orders that have not yet slowed, even as the market worries about Nvidia's leadership change and rising interest rates. Friday's regular session will show whether that is enough to steady chip stocks, with Nvidia's own results due on Tuesday 17 November.
Published in The Outspoken Digest
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