Cisco Sets Ambitious AI Revenue Target as Quarterly Earnings Exceed Expectations

Cisco Systems, Inc., a leading networking equipment provider, reported its quarterly earnings for fiscal 2026 on August 12. The company surpassed consensus expectations with revenue of $17.3 billion and adjusted earnings per share of $1.22.

The key takeaway from the report is Cisco's increased focus on AI revenue, which rose to a record-breaking goal of $7.5 billion for fiscal 2027, representing an impressive 87.5% year-over-year increase. This target accounts for approximately 37% of the company's projected overall revenue growth next year.

While this ambitious goal may put pressure on Cisco's margins, the company is well-positioned to support its customers in their AI deployments, according to CEO Chuck Robbins. The ongoing demand cycle has been described as a networking supercycle by the firm.