Cisco Rides AI Wave to Record Revenue Forecasts

Cisco Systems has issued an optimistic forecast for fiscal year 2027, projecting revenue and profits that exceed Wall Street's expectations. This positive outlook is buoyed by a substantial surge in demand for networking equipment and the critical infrastructure required for artificial intelligence.

The company anticipates first-quarter adjusted earnings between $1.32 and $1.34 per share, with revenue estimated at $18 billion to $18.2 billion. These figures surpass current analyst consensus estimates, signaling strong momentum.

For the entirety of fiscal year 2027, Cisco projects adjusted earnings of $5.05 to $5.11 per share and revenue ranging from $72.2 billion to $73.4 billion. This projection comfortably exceeds prior analyst expectations.

These forecasts follow a strong performance in the fourth quarter of fiscal 2026, where adjusted earnings reached $1.22 per share on revenue of $17.3 billion. Total product orders saw a significant year-over-year increase of 35%, with networking product orders climbing 40%.

Demand for AI infrastructure from hyperscale customers has been a key driver, with Cisco booking $4 billion in AI infrastructure orders in the fourth quarter. Total AI infrastructure orders for fiscal 2026 reached $9.3 billion, generating approximately $4 billion in revenue. For fiscal 2027, the company expects this AI infrastructure revenue to climb to $7.5 billion.

Overall, fiscal year 2026 saw revenue increase by 12% to $63.3 billion, with GAAP net income rising 30% to $13.3 billion. Cisco also continued its commitment to shareholders, returning $3.2 billion through dividends and share repurchases in the fourth quarter.