Cisco reported fiscal first-quarter revenue of $19 billion on 12 November, above the $18 billion expected by analysts, and lifted its forecast for AI infrastructure revenue from hyperscale customers to $9 billion this fiscal year, CNBC reported. The networking equipment maker released its results after the market closed. Its higher AI forecast follows an effort to win infrastructure business after missing the early years of the generative AI boom.
Key points
- Adjusted earnings were $1.40 per share, against the $1.33 LSEG consensus estimate.
- Cisco expects $9 billion in AI infrastructure revenue from hyperscalers this fiscal year, more than double its fiscal 2026 figure.
- Its fiscal second-quarter revenue and adjusted earnings forecasts both exceed analysts’ average estimates.
Cisco lifts its hyperscaler forecast to $9 billion
Cisco’s new $9 billion expectation for AI infrastructure revenue from hyperscalers is more than double the amount it recorded in fiscal 2026, according to CNBC. Hyperscalers are the large cloud customers building computing capacity at scale. Revenue from supplying them is central to Cisco’s push into AI infrastructure, alongside its established networking business.
Before the results, Coinpaper reported that Cisco had expected approximately $7.5 billion in AI infrastructure revenue for fiscal 2027, compared with around $4 billion delivered in fiscal 2026. The $9 billion forecast raises that earlier expectation. The same publication reported $9.3 billion in AI infrastructure orders from hyperscale customers during fiscal 2026, including $4 billion in the fourth quarter. Those order figures describe customer demand, while Cisco’s revised forecast concerns revenue it expects to record.
The sales mix matters as Cisco pursues that demand. Morgan Stanley had downgraded the company to Equal Weight because it was concerned that hyperscaler hardware sales could carry lower margins than traditional enterprise products, Coinpaper reported. Ahead of the quarter, Cisco had expected an adjusted gross margin of between 65% and 66%. Its fiscal 2026 orders included equipment for large cloud customers, but the revenue outlook sets the measure for how much of that business Cisco expects to recognise this year.
Cisco faces suppliers seeking a share of the same infrastructure spending. Marvell reported 46% data-centre revenue growth, while Broadcom raised its longer-term AI semiconductor forecasts, according to Coinpaper. Marvell’s reported growth is a data-centre sales measure, rather than a like-for-like comparison with Cisco’s forecast for AI infrastructure revenue from hyperscalers.
Fiscal first-quarter sales rise 24%
Cisco’s fiscal first-quarter revenue rose 24% from $15 billion a year earlier to $19 billion. Adjusted earnings of $1.40 per share also exceeded the $1.33 consensus estimate compiled by LSEG. The results put both measures ahead of expectations as Cisco raised its annual AI revenue outlook.
Cisco’s net income was $4.6 billion ($1.14 a share), against $2.9 billion (72 cents a share) in the comparable quarter last year. That is the company’s reported profit measure, distinct from the adjusted per-share earnings used in the comparison with analysts’ forecasts.
Chief executive Chuck Robbins said in Cisco’s statement that organisations were turning to the company to help scale and secure their systems for AI agents, CNBC reported. The results put revenue and profit figures beside that account of customer demand, while the $9 billion hyperscaler figure remains a forecast for the full fiscal year.
Cisco forecasts $18 billion to $18 billion next quarter
Cisco expects fiscal second-quarter revenue of $18 billion to $18 billion, above the $18 billion average analyst estimate from LSEG. It projects adjusted earnings of $1.34 to $1.36 per share, compared with the $1.23 average estimate. Both ranges concern the quarter following the reported results, rather than the full-year AI infrastructure forecast.
Cisco shares rose 5% in extended trading after the 12 November results. At that day’s close, the stock was up about 35% for the year, compared with a gain of about 9% for the Nasdaq over the same period.
