Cisco Ramps Up AI Orders to $9 Billion in Fiscal 2026

Cisco Systems has quietly emerged as one of this year's major artificial intelligence (AI) trades, with its shares closing at $121.74 on Tuesday, up 5% on the day and about 60% higher in 2026.

The key figure driving Cisco's AI momentum is a target of $9 billion in AI infrastructure orders from hyperscalers in fiscal 2026, an increase from its previous target of $5 billion set during its fiscal third-quarter earnings call in May.

This new target reflects the company's strong performance in the quarter, with revenue climbing 12% from a year earlier to hit a record $15.8 billion and non-GAAP earnings per share coming in at $1.06, up 10%, both of which topped the high end of the company's guidance.

However, while Cisco's order book is growing rapidly, with AI infrastructure orders reaching $5.3 billion year-to-date, exceeding its full-year expectation of $5 billion with a quarter still to go, investors may want to wait for confirmation and the fiscal 2027 outlook before paying up, given the stock trades at about 26 times forward earnings.