Cisco Systems Inc. (CSCO) has seen significant growth due to strong product orders from various sectors, including hyperscalers, enterprises, and cloud customers. In fiscal 2026, the company achieved record-high revenues, driven by its networking portfolio, AI-native security solutions, and operating systems. The increasing demand for AI workloads at the network edge and the rise of physical AI have boosted the industrial IoT portfolio.
Cisco closed fiscal 2026 with $9.3 billion in hyperscaler AI infrastructure orders, a substantial increase from fiscal 2025. The company expects hyperscaler AI revenues to reach $7.5 billion in fiscal 2027. In the fourth quarter of fiscal 2026, networking product orders rose 40% year over year, marking the eighth consecutive quarter of double-digit growth. Company-wide orders, excluding hyperscalers, increased 25% in the same quarter.
The demand for Cisco’s AI-enabled networking infrastructure and switching equipment is driven by AI traffic, infrastructure modernization, and security requirements. Major AI hyperscalers like Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), Meta Platforms Inc. (META), and Alphabet Inc. (GOOGL) are utilizing Cisco’s solutions for their data centers. The company’s vertically integrated networking stack is expanding across scale-out and scale-across AI architectures.
Cisco’s security revenues increased 14% year over year in the fourth quarter of fiscal 2026, with more than 1,500 customers purchasing newer security products. Firewall orders grew over 30% for the second consecutive quarter. The company expects security growth to move from low single digits in fiscal 2026 to high single digits in fiscal 2027, eventually reaching double-digit growth. Additionally, nearly 4,500 enterprises had signed up for Cisco Cloud Control by the end of the fourth quarter of fiscal 2026.
For the first quarter of fiscal 2027, Cisco expects revenues between $18 billion and $18.2 billion, with non-GAAP earnings projected at $1.32-$1.34 per share. The company anticipates fiscal 2027 revenues of $72.2-$73.4 billion and non-GAAP earnings of $5.05-$5.11 per share. The stock price has rallied 49.2% year to date, and the short-term average price target of brokerage firms represents an increase of 16.2% from the last closing price of $114.89.