Cisco Forecasts Record Revenue on Sustained Demand for AI Networking Gear

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

The company's stock initially rose 3 percent in extended trading after the announcement but later fell over 4 percent as investors' lofty expectations were not fully met. Cisco shares have increased more than 60 percent so far this year.

Cisco expects annual revenue between $72.2 billion and $73.4 billion, surpassing analysts' average estimate of $68.69 billion. The company also sees $7.5 billion in revenue from AI infrastructure orders from hyperscalers in fiscal 2027.

This growth is attributed to the increasing demand for generative AI from hyperscale cloud providers and enterprises. Cisco received AI infrastructure orders from hyperscalers worth $4 billion for the fourth quarter ended July 25, bringing the total for fiscal 2026 to $9.3 billion.