Cisco Systems is sending a strong signal to the market: the AI revolution is not just the domain of chip manufacturers, but also a fundamental driver for network infrastructure. The company raised its full-year revenue and profit forecasts, which the market immediately rewarded with a significant increase in its stock price.
Underpinning this optimism is the unprecedented demand generated by hyperscalers. Technology giants such as Alphabet, Microsoft and Meta are investing billions of dollars in data centre expansions to meet artificial intelligence workloads, and Cisco is a key beneficiary of this spending.
The company revealed that it has already secured AI orders worth more than $2 billion for fiscal 2025, mostly from major cloud players. The dynamics are impressive – in the last quarter alone, orders for AI infrastructure from hyperscalers totalled $1.3 billion.
CEO Chuck Robbins predicts AI infrastructure revenue from hyperscalers alone will reach $3bn by 2026. Analysts see this as a key catalyst for the networking business, which many considered mature.
However, Cisco is not just limiting itself to data centres. The company recently launched the ‘Cisco Unified Edge’ platform, moving AI computing closer to where it is created – into factories, retail shops or medical facilities.
In light of these contracts, the updated forecast for fiscal 2026 is for revenues in the range of $60.2-61bn (up from $59-60bn) and adjusted earnings per share of $4.08-4.14. Although first-quarter results ($14.88bn) only slightly beat expectations, it is future orders driven by AI that dominate the narrative and make investors optimistic.
