Cisco Quietly Becomes an AI Powerhouse with Substantial Growth Ahead

Cisco Systems is making significant strides in the AI infrastructure space, booking $9.30 billion in orders for FY2026 and guiding to $7.50 billion in revenue for FY2027.

The company's AI business has grown substantially, with networking revenue jumping 28% in Q4 FY2026, driven by a 40% increase in hyperscaler AI orders.

Cisco CEO Chuck Robbins stated that the accelerating adoption of agentic AI is fueling a networking super cycle, and the numbers support him.

The company's stock has gained 44.33% year to date and 66.66% over the past year, with shares trading near their $129.88 52-week high.

Cisco is expected to continue executing on hyperscaler AI wins and Splunk cross-sell, with a potential upside of 25.03% to our target price of $139.67.