Cisco Raises AI Infrastructure Revenue Forecast to $9 Billion
Revenue from networking equipment saw the most significant growth at 43%, while security solutions revenue increased by 7%.
One of the world's largest high-technology companies, Cisco, reported $18.5 billion in revenue for the first quarter, exceeding analysts' expectations. The company raised its AI infrastructure revenue forecast to $9 billion for the fiscal year.
Cisco's revenue for the first quarter of fiscal 2027 grew by 24% year-over-year. Adjusted earnings per share were $1.40, compared to the analysts' average forecast of $1.33. Net income under GAAP standards reached $4.6 billion, with earnings per share at $1.14.
The company attributed the results to high demand for networking technologies across all regions and customer categories. Revenue from networking equipment saw the most significant growth at 43%, while security solutions revenue increased by 7%.
Cisco more than doubled its revenue estimate from artificial intelligence infrastructure for large cloud companies compared to the previous fiscal year. Simultaneously, the company raised its forecast for adjusted earnings and revenue for the entire fiscal 2027.
For the second quarter, Cisco expects revenue in the range of $18–18.2 billion and adjusted earnings per share of $1.34–1.36. The Board of Directors also announced quarterly dividends of $0.42 per common share, with payment scheduled for January 20, 2027, to shareholders registered as of January 4.
