Morningstar Sees $7.5 Billion in Cisco's Hyperscaler AI Revenue by Fiscal 2027

Cisco's AI revenue opportunity is immense and growing quickly according to Morningstar. The firm expects Cisco's hyperscaler AI revenue to reach $7.5 billion in fiscal 2027, citing a healthy revenue backlog after bagging $9.3 billion in AI infrastructure orders during fiscal 2026.

Morningstar said that Cisco is converting AI demand into revenue faster than anticipated, with AI infrastructure orders creating a backlog that should begin flowing through revenue in the coming year.

The firm expects Cisco's AI revenue to rise toward $20 billion, or about 20% of sales, by the end of the decade, compared with $1 billion, or 2% of sales, in fiscal 2025. Morningstar also pointed to strength outside AI, highlighting that Cisco's campus orders grew 20% as customers refreshed aging infrastructure.

Cisco CEO Chuck Robbins said during a post-earnings call that the company believes the accelerating adoption of agentic AI is fueling a 'networking supercycle' as customers invest in infrastructure to handle rising AI traffic and costs across cloud, on-premise and edge environments.