Cisco raises fiscal 2027 outlook on AI demand

Cisco reported fiscal 2027 first-quarter revenue of $18.5 billion, up 24% from a year earlier, and adjusted earnings of $1.40 per share, exceeding analyst expectations. The company also raised its full-year revenue and earnings forecasts, citing demand for networking equipment used in artificial intelligence infrastructure.

Revenue topped the approximately $18.1 billion analysts had expected, while adjusted earnings per share beat a consensus estimate of about $1.33. Cisco’s net income was $4.6 billion, compared with $2.9 billion a year earlier, according to the company’s results. The figures reflect one quarter and do not establish how long the current demand will continue.

Cisco raised its fiscal 2027 revenue outlook to between $74.8 billion and $75.8 billion, from a prior range of $72.2 billion to $73.4 billion. It lifted its adjusted earnings forecast to $5.47 to $5.53 per share, compared with its previous range of $5.05 to $5.11.

The company also increased its forecast for fiscal 2027 AI infrastructure revenue from $7.5 billion to $9 billion. Cisco said the new projection would be more than double its fiscal 2026 level. In remarks to investors, Chief Executive Chuck Robbins...