Cisco forecasts annual revenue above estimates on sustained AI spending
Cisco Systems has forecasted fiscal 2027 revenue to exceed Wall Street expectations, signaling confidence in sustained demand for its artificial intelligence networking gear. The company expects annual revenue between US$72.2 billion and US$73.4 billion, surpassing analysts' average estimate of US$68.69 billion. Cisco also anticipates US$7.5 billion in revenue from AI infrastructure orders from hyperscalers in fiscal 2027.
However, shares of the company fell over 4 per cent after initially rising 3 per cent in extended trading following the results, as investors had lofty expectations. The networking giant has benefited from hyperscale cloud providers and enterprises building out their infrastructure to handle the complex demands of generative AI.
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