Cisco Predicts Record Revenue on Strong AI Demand

Cisco Systems has forecast fiscal 2027 revenue above Wall Street expectations, citing sustained strong demand for its AI networking gear.

The company 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.

Cisco has benefited from hyperscale cloud providers and enterprises building out their infrastructure to handle the complex demands of generative AI, with the company receiving 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.

However, 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.