Cisco Forecasts Record-Breaking Revenue Driven by AI Networking Demand

Cisco Systems has forecast its fiscal 2027 revenue to exceed Wall Street expectations. The company expects annual revenue between $72.2 billion and $73.4 billion, surpassing analysts' average estimate of $68.69 billion.

This forecast is driven by strong demand for Cisco's AI networking gear. The company has benefited from hyperscale cloud providers and enterprises building out their infrastructure to handle the complex demands of generative AI.

Cisco received AI infrastructure orders worth $4 billion from hyperscalers in the fourth quarter ended July 25, bringing the total for fiscal 2026 to $9.3 billion. The company also expects $7.5 billion in revenue from AI infrastructure orders from hyperscalers in fiscal 2027.

Shares of Cisco fell over 4% after initially rising 3% in extended trading following the results, as investors had lofty expectations heading into the report. Analysts note that while the company delivered strong results, the market is treating this as confirmation of the AI infrastructure story rather than a new catalyst.