Cisco Defies AI Bubble Fears with Record Fiscal Q4 and Elevated Outlook
Cisco Systems (NASDAQ:CSCO) has reported a record fiscal fourth quarter and elevated fiscal 2027 outlook, defying concerns of an AI bubble. According to CEO Chuck Robbins, hyperscaler momentum is driving growth, with all four major hyperscalers posting triple-digit order growth in the latest quarter.
Robbins cited AI-era data center traffic running 14 times higher than traditional cloud and hyperscalers directing 13% of capex to Cisco's addressable market. He emphasized that this transition is a multi-year tailwind, not a cyclical spike.
The company reported $4 billion of AI-related orders in Q4 alone and $9.3 billion across fiscal 2026, guiding to $7.5 billion of AI infrastructure revenue in fiscal 2027. Robbins highlighted the strength of Cisco's customers, stating 'The customers who are making these investment decisions are massive customers, some of the strongest balance sheets in the world, who view this transition as existential.'
CSCO shares pulled back to $115 from $124 despite the earnings beat, but analysts hold a $133 consensus target with 17 buy ratings.