Cisco forecasts annual revenue above estimates on sustained AI spending

On August 12, Cisco Systems projected fiscal 2027 revenue to exceed Wall Street predictions, suggesting robust prospects driven by robust demand for its AI networking products. The San Jose-based firm's stock surged by 3% in after-hours trading, having risen more than 56% year-to-date. Cisco's progress can be attributed to hyperscale cloud providers and enterprises constructing infrastructure to manage the intricate needs of generative AI.

The networking leader attracted AI infrastructure orders from hyperscalers totaling $4 billion during the fourth quarter ending July 25, accumulating to $9.3 billion overall. Cisco anticipates annual revenue ranging from $72.2 billion to $73.4 billion, surpassing analysts' average forecast of $68.69 billion, as per LSEG data. The company reported $17.25 billion in revenue for the fourth quarter ending July 25, surpassing estimates of $16.82 billion.