Cisco Systems forecasted annual revenue for fiscal 2027 to exceed Wall Street expectations, driven by robust demand for its artificial intelligence networking solutions. The company anticipates revenue between $72.2 billion and $73.4 billion, surpassing analysts' average estimate of $68.69 billion, according to data from LSEG. This projection follows a strong performance in the fourth quarter, where Cisco secured $4 billion in AI infrastructure orders from hyperscalers, contributing to a total of $9.3 billion for fiscal 2026.
Key Details
The networking giant's shares initially rose but later fell over 4% in after-hours trading, reflecting investor caution despite the positive outlook. Cisco's stock has gained nearly 60% in 2026, but analysts noted that high expectations may have already been priced in. Jake Behan, head of capital markets at Direxion, stated, "Cisco delivered strong results, but the market appears to be treating this as confirmation of the AI infrastructure story rather than a new catalyst."
Background
For its fourth quarter, Cisco is expected to report adjusted earnings of $1.17 per share on revenue of approximately $16.82 billion, marking a new quarterly record. The company had previously forecasted revenue between $16.7 billion and $16.9 billion for the quarter. Additionally, Cisco raised its full-year guidance for fiscal 2026, now projecting revenue of $62.8 billion to $63 billion, up from an earlier estimate of $61.2 billion to $61.7 billion.
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Cisco's forecast suggests continued strong demand for AI-related networking solutions, which could positively influence the technology sector and related stocks. Investors will closely monitor Cisco's upcoming earnings report for insights into the sustainability of this growth. Watch for Cisco's fourth-quarter earnings release, scheduled for later this week.
Based on reporting by: businesstimes.com.sg, livemint.com