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Cisco forecasts FY27 revenue above estimates on AI gear demand
Cisco Systems has forecast fiscal 2027 revenue between $72.2 billion and $73.4 billion, above analysts' average estimate of $68.69 billion, on strong demand for its AI networking equipment. The company expects $7.5…
The Story in Brief
Cisco Systems has forecast fiscal 2027 revenue between $72.2 billion and $73.4 billion, above analysts' average estimate of $68.69 billion, on strong demand for its AI networking equipment. The company expects $7.5 billion in revenue from AI infrastructure orders from hyperscalers in the coming fiscal year.
In the fourth quarter ended July 25, Cisco received AI infrastructure orders worth $4 billion from hyperscalers, bringing the fiscal 2026 total to $9.3 billion. Quarterly revenue rose 17.6% to $17.25 billion, beating estimates of $16.82 billion. Cisco shares fell over 4% in extended trading after initially rising 3%, as investors had high expectations.
The Indian Opinion
The stock drop after a beat tells a familiar AI story: markets now expect constant acceleration, not just growth. Cisco's hardware-heavy product mix is squeezing margins, which fell slightly below estimates at 65-66%. The real test is whether enterprises outside hyperscalers place orders at the same pace. If AI demand broadens, Cisco wins. If it stays concentrated among a few big buyers, the high stock price will look stretched.
Source: telecom.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
