Nov 12 (Reuters) – Cisco raised its annual revenue forecast on Thursday, betting on strong demand for its AI networking equipment and cybersecurity tools.
The company, which has doubled down on its AI efforts by making strategic investments in silicon and optics, is benefiting as Big Tech’s massive spending has moved beyond AI processors to the switches and routers required to connect large data-center systems.
“We are in the very early stages of a multi-year networking supercycle,” CEO Chuck Robbins said in a statement.
The company raised its fiscal 2027 forecast for AI infrastructure revenue from hyperscalers to $9 billion from $7.5 billion.
Meanwhile, Cisco is also building software tools that businesses can use to build their own armies of bots, known as AI agents, to protect their IT infrastructure against cybersecurity threats.
The company expects fiscal 2027 revenue in the range of $74.8 billion to $75.8 billion, compared with its previous forecast of $72.2 billion to $73.4 billion.
Cisco reported first-quarter revenue of $18.5 billion, compared with analysts’ average estimate of $18.14 billion, according to data compiled by LSEG.
Shares of the San Jose, California-based company were flat in extended trading.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Sriraj Kalluvila)
