Cisco raises AI revenue outlook after a 24% quarterly sales increase
Cisco reported $18.5 billion in fiscal first-quarter revenue and raised its forecast for AI infrastructure sales to hyperscalers to $9 billion this fiscal year.
Cisco raised its full-year outlook Thursday evening after reporting fiscal first-quarter revenue of $18.5 billion, up 24% from a year earlier. Adjusted earnings were $1.40 a share, while earnings under generally accepted accounting principles were $1.14 a share.
The networking-equipment company now expects $9 billion in AI infrastructure revenue from hyperscale customers in fiscal 2027, more than double its fiscal 2026 total. That is management's forecast, not revenue already booked for the full year.
For fiscal 2027 overall, Cisco projects revenue of $74.8 billion to $75.8 billion and adjusted earnings of $5.47 to $5.53 a share. Its corresponding GAAP earnings forecast is $4.38 to $4.44 a share.
The company expects second-quarter revenue of $18.0 billion to $18.2 billion and adjusted earnings of $1.34 to $1.36 a share.
The results cover the quarter ended October 24. They offer a fresh company-level look at spending on networking infrastructure, but Cisco's forecast is not a guarantee of future demand across the wider AI industry.
