Cisco's AI Revenue Forecast Falls Short of Investor Expectations

Cisco Systems Inc. disappointed investors with its AI outlook, projecting $7.5 billion in sales tied to the AI data center boom this fiscal year.

This figure falls short of expectations, especially considering that the company has already amassed $9.3 billion in artificial intelligence-related orders over the past year.

Cisco's projected total revenue for fiscal 2027 is between $72.2 and $73.4 billion, with AI sales making up about 10% of this amount.

Analyst David Vogt from UBS questioned the conservatism of Cisco's forecast, stating that it 'just strikes me as very, very conservative.'