- Cisco reported a profit of $3.86 billion in its fiscal fourth quarter, up from $2.55 billion a year earlier.
- The company received AI infrastructure orders from hyperscalers worth $4 billion in the quarter ended July 25, bringing the total to $9.3 billion.
- Cisco forecast fiscal 2027 revenue between $72.2 billion and $73.4 billion, exceeding analysts' average estimate of $68.69 billion.
- Shares of Cisco rose 3% in extended trading following the forecast.
- Cisco's AI sales are projected to account for about 10% of its total revenue in fiscal 2027.
- This marks the first time Cisco has provided a full-year AI revenue forecast, raising questions among analysts regarding its alignment with the $9.3 billion in AI-related orders.
- Cisco projected $7.5 billion in sales tied to the AI data center boom this fiscal year, which disappointed some investors.
Cisco Systems Inc. reported a profit of $3.86 billion for its fiscal fourth quarter, a significant increase from $2.55 billion a year earlier. The company attributed this growth to a surge in orders from artificial intelligence hyperscalers, with $4 billion in AI infrastructure orders received in the quarter ending July 25, contributing to a total of $9.3 billion in AI-related orders over the past year.126
The networking giant's revenue for the quarter was $17.25 billion, exceeding analysts' expectations of $16.82 billion. Cisco's forecast for fiscal 2027 revenue is between $72.2 billion and $73.4 billion, surpassing the average analyst estimate of $68.69 billion, indicating strong confidence in ongoing demand for its AI networking products.3
This marks the first time Cisco has provided a full-year AI revenue forecast, with AI sales expected to account for about 10% of total revenue. The company’s shares rose 3% in extended trading and have increased over 56% this year, reflecting investor optimism about its AI strategy and growth potential.5
Cisco's performance highlights the growing importance of AI in the tech industry, as companies increasingly rely on advanced networking solutions to support their AI initiatives.
“Cisco's AI-related orders totaled $4 billion in the quarter ended July 25, bringing the cumulative total to $9.3 billion. The company projects AI sales will make up about 10% of its fiscal 2027 revenue, which it expects to be between $72.2 billion and $73.4 billion.”
WSJ
