Cisco lifts annual revenue forecast on strong AI networking demand

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Cisco beat Wall Street first-quarter estimates, reporting $18.5 billion in revenue and an adjusted profit of $1.40 per share, driven by strong AI infrastructure demand. The…

Cisco beat Wall Street estimates for first-quarter results and raised its annual revenue forecast on Thursday, as the network-gear maker bets on sustained strong demand from companies building out their AI infrastructure.

The company has doubled down on its AI efforts through strategic investments as Big Tech's massive spending moves beyond AI processors to the switches and routers required to connect large data-center systems.

Cisco expects fiscal 2027 revenue in the range of $74.8 billion to $75.8 billion, compared with its previous forecast of $72.2 billion to $73.4 billion.

"We are in the very early stages of a multi-year networking supercycle," CEO Chuck Robbins said in a statement.

The company raised its fiscal 2027 forecast for AI infrastructure revenue from hyperscalers to $9 billion from $7.5 billion. The segment generated revenue of $4 billion a year earlier.

Investors have been worried about a possible slowdown in data-center buildout following Democrats' sweeping win in the US midterms, as well as rising borrowing costs and their impact on the debt-fueled construction.

Cisco reported first-quarter revenue of $18.5 billion, compared with analysts' average estimate of $18.14 billion, according to data compiled by LSEG.

The company reported an adjusted profit of $1.40 per share for the quarter ended October 24, above estimates of $1.33.

Cisco is also building software tools that businesses can use to build their own ​armies of bots, known as AI agents, to protect their IT ‌infrastructure against cybersecurity threats.

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