Cisco raises FY2027 hyperscaler AI revenue expectation to $9 billion

Cisco raised its fiscal 2027 revenue expectation for AI infrastructure sold to hyperscalers to $9 billion, up from the $7.5 billion forecast it issued in August. The company said the new target would be more than double the approximately $4 billion it generated from that market in fiscal 2026.

That $9 billion figure is a forward-looking company estimate, not revenue already reported or orders already booked. Cisco did not disclose a separate first-quarter revenue figure for hyperscaler AI infrastructure. The opened records also do not provide customer-level data or third-party demand measurements that independently validate the forecast.

Separately, Cisco raised its full-year revenue guidance to between $74.8 billion and $75.8 billion, from the $72.2 billion to $73.4 billion range it issued in August. It now expects full-year GAAP earnings of $4.38 to $4.44 per share and non-GAAP earnings of $5.47 to $5.53 per share, up from prior ranges of $4.00 to $4.06 and $5.05 to $5.11.

Those full-year forecasts are separate from the results Cisco reported for its fiscal first quarter, which ended October 24. Revenue was $18.517 billion, rounded by the company to $18.5 billion, up 24% from $14.883 billion a year earlier. GAAP net income rose to $4.552 billion from $2.860 billion, while diluted earnings increased to $1.14 per share from $0.72. Cisco also said the results were furnished in a Form 8-K.

Networking product revenue reached $11.132 billion for the quarter, up 43% year over year. Cisco’s release did not break out how much of that quarterly Networking revenue came from AI infrastructure.

For its fiscal second quarter, Cisco forecast revenue of $18.0 billion to $18.2 billion, GAAP earnings of $1.07 to $1.09 per share and non-GAAP earnings of $1.34 to $1.36 per share.