Prime Highlight
- Cisco raised its fiscal 2026 revenue forecast to as much as $61 billion, signaling strong momentum in capturing growing AI-related spending.
- The upbeat outlook fueled a 7.5% surge in Cisco’s share price, reflecting rising investor confidence in the company’s AI-focused shift.
Key Facts
- Cisco expects 2026 earnings of $4.14 per share, beating analyst estimates of $4.05, and forecasts fiscal Q2 revenue of $15–$15.2 billion, above expectations.
- The company reported $14.9 billion in fiscal Q1 revenue, an 8% increase, with major cloud providers placing $1.3 billion in AI infrastructure orders, up from $800 million last quarter.
Background
Cisco Systems Inc. shares climbed on Thursday after the company raised its 2026 outlook, signaling growing momentum in its push to capture more artificial intelligence spending. The network-equipment leader now expects fiscal 2026 revenue to reach as much as $61 billion, about $1 billion more than its earlier forecast and ahead of analyst estimates. Cisco also lifted its earnings projection, which exceeded market expectations.
The upbeat forecast sent shares up as much as 7.5% in early New York trading. The stock had already gained 25% this year through Wednesday’s close, reflecting renewed investor confidence in Cisco’s shift toward AI-focused technologies.
Cisco is upgrading its chips and networking gear to support the rising need for high-speed, secure connections across data centers running AI workloads. The company is competing with Broadcom and Hewlett-Packard Enterprise’s Juniper Networks, but is strengthening its position by partnering with Nvidia to enhance its AI infrastructure offerings.
Chief Executive Officer Chuck Robbins said demand shows that customers are moving fast to “unlock the potential of AI.” Cisco expects fiscal 2026 earnings of $4.14 per share, excluding some items, above the analyst consensus of $4.05.
For the fiscal second quarter ending in January, Cisco forecasts revenue between $15 billion and $15.2 billion, topping expectations of $14.7 billion. Adjusted earnings are projected at $1.02 per share, compared with Wall Street’s 99-cent forecast.
Cisco reported fiscal first-quarter revenue of $14.9 billion, an 8% increase, beating estimates. Profit hit $1 per share, beating analyst predictions. Major cloud providers placed $1.3 billion in AI infrastructure orders, up from $800 million last quarter.
Robbins has worked to diversify Cisco’s business, especially by buying Splunk for $28 billion in 2024 to grow its security and monitoring software.
