Cisco Bets AI Infrastructure Boom Will Drive Another Year of Growth
Synopsis
The company expects fiscal 2027 revenue to reach US$72.2 billion–US$73.4 billion, above Wall Street forecasts, as hyperscalers accelerate AI infrastructure spending and orders for Cisco's AI networking gear continue to climb.
Cisco is projecting revenue for fiscal 2027 to be between US$72.2 billion to US$24.3 and 73.4 billion, exceeding the US$68.69 billion median analyst estimate, as increased spending on AI infrastructure to meet demand for networking equipment takes off.
The Cisco revenue forecast follows the fourth-quarter results reported on July 25, with revenue amounting to US$17.25 billion, up from a year ago, when it was US$14.67 billion, beating the estimates of US$16.82 billion by the analysts.
AI Orders Push Higher
In the fourth quarter, Cisco’s hyperscale cloud customers have ordered US$4 billion in AI infrastructure orders, bringing total orders for AI-related infrastructure to US$9.3 billion worth of infrastructure for fiscal 2026. The firm expects that Cisco’s hyperscaler revenue from AI infrastructure will be worth US$7.5 billion in FY27.
Cisco’s net income for the latest quarter came to US$3.86 billion, or 97 cents a share, from US$2.55 billion or 64 cents, compared to 69 cents for the same period a year ago. Its earning (adjusted) came to US$1.22 per share.
Cisco projects revenue in the first quarter of fiscal 2027 to come between US$18 billion to US$18.2 billion and adjusted earnings per share (EPS) of US$1.32 to US$1.34. For the year ahead, the firm is projecting adjusted EPS between US$5.05 and US$5.11.
Global Spending Provides Context
With increased spending on AI across the world, Cisco revenue projections are a welcome relief. According to Gartner’s Worldwide AI Spending Forecast, worldwide spending on AI is set to rise by 47 percent in 2026, reaching US$2.59 trillion, up from US$1.76 trillion registered in 2025.
Gartner stated that technology suppliers and hyperscalers would drive the spending on AI, with enterprise spending set to rise substantially with further growth opportunities. The forecast shows that the spending will be on software, services, systems, and AI infrastructure.
The figures released with the quarterly numbers are projected to be US$63.3 billion for Cisco's fiscal 2026 revenue and US$56.7 billion for fiscal 2025. This will surpass the estimates of a 14 to 16 percent increase over the current (fiscal 2026) revenue projections.
The figures are an indication of the significant investments that cloud companies are making in their data centre infrastructure in support of the American enterprises.
The worldwide spending on applications is an essential pointer for the Australian businesses considering cloud computing companies’ expansion into network and computing infrastructure across the world.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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