Cisco Forecasts Strong Fiscal 2027 Growth as AI Networking Demand Surges

Cisco Systems has issued a stronger-than-expected fiscal 2027 outlook, fueled by rising demand for networking equipment and artificial intelligence infrastructure from hyperscale customers.

The networking technology giant expects first-quarter adjusted earnings of $1.32 to $1.34 per share, well above Wall Street’s average estimate of $1.14. Cisco also forecasts quarterly revenue between $18 billion and $18.2 billion, surpassing analysts’ consensus of $16.66 billion.

For fiscal 2027, Cisco projects adjusted earnings of $5.05 to $5.11 per share and revenue ranging from $72.2 billion to $73.4 billion. Analysts had expected earnings of $4.28 per share on revenue of approximately $62.91 billion.

Despite the bullish Cisco earnings forecast, the company’s shares fell about 2% after initially gaining following the results, as some investors appeared to take profits after the stock’s recent rally.

Cisco’s outlook follows a strong fourth quarter. Adjusted earnings reached $1.22 per share, beating the $1.17 estimate, while revenue climbed 18% year over year to $17.3 billion, exceeding expectations of $16.82 billion.

Demand across Cisco’s networking business remained robust. Total product orders increased 35% from a year earlier, while networking product orders jumped 40%, extending the company’s streak of double-digit order growth to eight consecutive quarters. Product revenue advanced 24%, driven by a 28% increase in networking revenue.

AI infrastructure emerged as another major growth driver. Cisco recorded $4 billion in AI infrastructure orders during the fourth quarter, bringing fiscal 2026 orders to $9.3 billion. AI infrastructure generated approximately $4 billion in revenue during fiscal 2026, with Cisco expecting that figure to climb to $7.5 billion in fiscal 2027.

For fiscal 2026, Cisco revenue increased 12% to $63.3 billion, while GAAP net income surged 30% to $13.3 billion. GAAP earnings per share rose 31% to $3.33.

Cisco also returned $3.2 billion to shareholders through dividends and stock buybacks during the quarter and declared a quarterly dividend of $0.42 per share.