Cisco raises annual revenue forecast, betting on strong demand for AI networking

Résumé détaillé

Company expects fiscal 2027 revenue in range of $74.8-billion to $75.8-billion, compared with previous forecast of $72.2-billion to $73.4-billion

Cisco CSCO-Q raised its annual revenue forecast on Thursday, betting on strong demand for its AI networking equipment and cybersecurity tools.

The company, which has doubled down on its AI efforts by making strategic investments in silicon and optics, is benefiting as Big Tech’s massive spending has moved beyond AI processors to the switches and routers required to connect large data centre systems.

“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 US$9-billion from US$7.5-billion.

Meanwhile, 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.

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

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

Shares of the San Jose, California-based company were flat in extended trading.

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