Cisco forecasts fiscal 2027 revenue above estimates as AI networking demand stays strong

Cisco Systems kept its AI-driven growth story intact with fiscal fourth-quarter revenue rising 18% to about $17.3 billion and fiscal first-quarter revenue guidance of $18 billion to $18.2 billion, both above Wall Street estimates, while its fiscal 2027 targets remained ahead of consensus. The stock nonetheless fell 9% to around $113 in Thursday trading after climbing more than 60% this year, as Piper Sandler said the company's outlook looked conservative for the current demand environment and some investors questioned whether growth was nearing a peak. Cisco said hyperscalers placed $4 billion of infrastructure orders in the quarter, bringing the fiscal-year total to $9.3 billion, and it expects revenue from that group to rise from about $4 billion in the past fiscal year to $7.5 billion in fiscal 2027. KeyBanc remained bullish, arguing that rising hyperscaler capital spending, neocloud demand and other cloud investment could help Cisco gain market share.

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