Cisco forecasts fiscal 2027 revenue above estimates on AI demand

Cisco Systems forecast fiscal 2027 revenue above Wall Street expectations on August 12, signaling confidence that strong demand for its artificial intelligence networking gear will continue to power growth. The networking giant expects annual revenue between $72.2 billion and $73.4 billion, ahead of analysts' average estimate of $68.69 billion. It also projects $7.5 billion in revenue from AI infrastructure orders from hyperscalers in fiscal 2027.

The company's fourth-quarter revenue for fiscal 2026 grew 17.6% to $17.25 billion, beating estimates of $16.82 billion. Adjusted earnings per share came in at $1.22, surpassing the consensus estimate of $1.17. For the quarter, AI infrastructure orders from hyperscalers totaled $4.0 billion, bringing the total for fiscal 2026 to $9.3 billion and narrowly surpassing the company's $9.0 billion goal.

Despite the strong results, Cisco's shares fell over 4% in extended trading after initially rising. The stock had risen more than 60% in 2026 ahead of the report, setting a high bar for performance. "Cisco delivered strong results, but the company entered earnings with a lot of optimism already priced into the shares," said Jake Behan,...