Cisco exceeded forecasts amid demand for AI infrastructure
Cisco Systems closed the fourth fiscal quarter better than analysts expected thanks to sustained demand for networking equipment and artificial intelligence infrastructure. After the earnings release, the company's stock rose about 2.5% in extended trading.
Cisco's revenue for the quarter ended July 25 was $17.3 billion. A year earlier, the company took in about $14.7 billion, so the figure grew about 18%.
Analysts on average expected revenue of about $16.8 billion. Adjusted profit was $1.22 per share versus the market-forecast $1.17.
Demand for AI equipment supported Cisco
One of the main growth drivers remains networking equipment needed to build and expand AI data centers. Cisco's networking segment revenue reached about $9.66 billion, up from $7.63 billion a year ago.
The company supplies switches, routers and other equipment that enable linking large numbers of servers and accelerators in large computing centers. Fast construction of AI data centers by the largest tech companies is increasing demand for such solutions.
Cisco CEO Chuck Robbins attributes the company's strong results to a large-scale refresh of network infrastructure and growing needs of customers adopting artificial intelligence. The company expects to capitalize on growing data-center investment by offering not just networking equipment but also cybersecurity and infrastructure-management solutions.
AI infrastructure orders run into billions
As of the end of the third fiscal quarter, Cisco reported that since the start of the fiscal year it had received $5.3 billion in AI infrastructure orders from the largest cloud providers.
At that time the company sharply raised its expectations for this area: the fiscal-year AI infrastructure order forecast was increased from $5 billion to $9 billion, and expected revenue from $3 billion to $4 billion.
At the same time, orders for data-center switching equipment grew more than 40% year-over-year. This shows that the investment boom around artificial intelligence extends not only to chipmakers such as Nvidia but also to networking infrastructure suppliers.
Cisco shares rose significantly in 2026
Investor interest in Cisco has strengthened amid expectations that the company will become one of the major beneficiaries of the massive build-out of AI infrastructure. Since the start of 2026, the company's shares have gained about 60%.
Management also points to broad demand not only from the largest cloud-service operators. Companies are also upgrading enterprise networks, security systems and equipment for campuses and data centers.
Cisco's strong report was further confirmation that growth in AI spending continues to bring additional revenue to makers of equipment needed to run large computing systems.
