Cisco Raises Guidance on the Back of Strong AI Demand
Strong Quarterly Results Exceed Expectations
Cisco Systems Inc. raised its annual revenue forecast following a fiscal first quarter that exceeded Wall Street estimates, highlighting how companies’ investment in artificial intelligence (AI) is fueling demand for networking equipment. The networking giant reported adjusted earnings per share of $1.11 on revenue of $14.67 billion, both topping analysts' projections.
AI-Powered Growth and Strategic Moves
Cisco credited its stronger-than-expected performance to customers seeking to modernize their networks for
AI-driven workloads. With more companies investing in AI, the need for advanced networking solutions has created opportunities for Cisco's hardware and software offerings.
Key Highlights from Cisco’s Report
- Annual revenue forecast lifted to $53.8 billion–$55.0 billion, up from previous guidance.
- Quarterly revenue: $14.67 billion (beating the consensus estimate of $14.58 billion).
- Adjusted profit per share: $1.11 (higher than the expected $1.03).
- Strong enterprise demand driven by the rise in AI adoption.
CEO’s Perspective
CEO Chuck Robbins noted that the expanding networking needs of AI are just beginning to benefit Cisco, which positions the company for sustained growth. “We’re seeing an acceleration in demand tied to AI infrastructure buildouts,” Robbins told investors.
Future Outlook
The company’s upbeat guidance signals optimism about maintaining strong momentum as organizations upgrade infrastructure to support AI and next-generation applications. Cisco also emphasized its commitment to strengthening its product strategy through investments and partnerships with AI leaders.
Market Reaction
Shares of Cisco rose more than 3% in after-hours trading, reflecting investor confidence in the company’s ability to capitalize on AI-driven opportunities and maintain its competitive edge.
