Cisco Exceeds Wall Street Estimates with AI-Powered Revenue Forecast

Cisco Systems has forecasted its fiscal 2027 revenue to exceed Wall Street expectations, driven by sustained demand for AI networking gear.

The company's stock initially rose 3% in extended trading after the results were released but fell over 4% as investors had high hopes heading into the report.

Cisco expects annual revenue between $72.2 billion and $73.4 billion, surpassing analysts' average estimate of $68.69 billion, according to data compiled by LSEG.

The networking giant sees $7.5 billion in revenue from AI infrastructure orders from hyperscalers in fiscal 2027, with the company benefiting from hyperscale cloud providers and enterprises building out their infrastructure to handle complex demands of generative AI.