Cisco Predicts Record Revenue on Strong Demand for AI Networking Gear
Cisco Systems CSCO-Q has forecast its annual revenue for fiscal 2027 to be between US$72.2-billion and US$73.4-billion, surpassing analysts' estimates of US$68.69-billion. This represents a significant increase in confidence by the company regarding its growth prospects.
The networking giant has attributed its strong performance to the increasing demand for AI networking gear among hyperscale cloud providers and enterprises building out their infrastructure to handle the complex demands of generative AI.
Cisco has received orders worth US$9.3-billion from hyperscalers, including a notable US$4-billion in AI infrastructure orders for the fourth quarter ended July 25. The company's revenue for this period was US$17.25-billion, beating estimates of US$16.82-billion.
Shares of Cisco have risen over 56% so far this year, with a 3% increase in extended trading following the release of its forecast.