Cisco raised its fiscal 2026 revenue outlook to $60.2 billion to $61 billion, surpassing Wall Street expectations, driven by surging demand for AI-ready networking systems and infrastructure, as reported in its Q3 earnings.
-
Cisco’s shares surged 8% in late trading following the upbeat earnings report.
-
AI infrastructure orders reached $1.3 billion in the recent quarter, up from $800 million previously.
-
The company beat Q1 revenue estimates with $14.9 billion, an 8% year-over-year increase, including $4.14 adjusted earnings per share for fiscal 2026, exceeding analyst projections of $4.05.
Cisco fiscal 2026 revenue outlook hits $60.2B-$61B amid AI boom; shares jump 8%. Discover how networking demand fuels growth and what it means for investors today.
What is Cisco’s fiscal 2026 revenue outlook?
Cisco’s fiscal 2026 revenue outlook has been raised to between $60.2 billion and $61 billion, reflecting stronger-than-expected demand for AI-ready networking systems. This adjustment comes after the company outperformed in its third quarter earnings, with executives highlighting accelerated AI infrastructure adoption. The new projection exceeds Wall Street’s earlier estimates by nearly $1 billion, signaling robust growth in secure, high-speed networking solutions.
How is AI demand boosting Cisco’s orders and partnerships?
AI demand is significantly boosting Cisco’s orders, with infrastructure-related bookings climbing to $1.3 billion in the latest period from $800 million in the prior quarter. Cisco CEO Chuck Robbins noted during the earnings call that the AI pipeline is set to accelerate in the second half of fiscal 2026, as customers rapidly deploy AI systems requiring secure networks. The company is updating its chips and routing hardware to manage increased AI traffic, including connections for large server racks used in training models.
Cisco is enhancing its competitive edge through partnerships, notably with Nvidia, to develop AI-optimized equipment. This positions the company against rivals like Broadcom and Hewlett Packard Enterprise, which acquired Juniper Networks. Robbins emphasized that networks must remain secure amid expanding AI workloads across data centers, cloud, and enterprise environments. Bloomberg Intelligence analyst Woo Jin Ho observed that Cisco’s AI momentum remains strong, suggesting the raised outlook could still be conservative if demand sustains.
Frequently Asked Questions
What were Cisco’s key financial results for the fiscal first quarter of 2026?
Cisco reported $14.9 billion in revenue for the fiscal first quarter ending October 25, marking an 8% increase from the previous year and surpassing analyst expectations of $14.8 billion. Adjusted earnings reached $1 per share, beating forecasts of 98 cents, while profit excluding certain items aligned with projections.
How does Cisco plan to handle AI integration in its workforce and products?
Cisco is integrating AI by encouraging employees to use tools like Cursor, Windsurf, and GitHub Copilot, with 70% of its 20,000 developers accessing them monthly; AI-generated code now comprises nearly 25% of internal production, up from 4% last year. CEO Chuck Robbins prioritizes productivity over layoffs, contrasting with cuts at firms like Amazon and Microsoft, to foster innovation in AI-powered development and security.
Key Takeaways
- Revenue Guidance Upgrade: Cisco’s new fiscal 2026 outlook of $60.2 billion to $61 billion underscores AI-driven networking demand exceeding expectations.
- AI Orders Surge: Orders hit $1.3 billion, supported by hardware upgrades and Nvidia partnerships, positioning Cisco ahead in the market.
- Strategic Expansion: The $28 billion Splunk acquisition bolsters software focus, while internal AI adoption enhances developer efficiency without staff reductions.
Conclusion
Cisco’s fiscal 2026 revenue outlook and AI demand growth highlight the company’s pivotal role in powering secure networking for AI advancements. With shares up 25% year-to-date, outperforming the Nasdaq, and initiatives like the Splunk integration strengthening its software portfolio, Cisco is well-positioned for sustained expansion. Investors should monitor ongoing AI infrastructure trends, as they continue to shape the networking landscape in the coming quarters.
