The logo of U.S. networks giant Cisco Systems is seen in front of their headquarters in Issy-les-Moulineaux, near Paris, France August 6, 2022. REUTES/Sarah Meyssonnier

Cisco forecasts annual revenue above estimates on sustained AI spending

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Aug 12 : Cisco Systems forecast fiscal 2027 revenue above Wall Street expectations on Wednesday, signaling confidence that strong demand for its AI networking gear will continue to power growth.

Shares of the San Jose, California-based company rose 3 per cent in extended trading. They have climbed over 56 per cent so far this year.

Cisco has benefited from hyperscale cloud providers and enterprises building out their infrastructure to handle the complex demands of generative AI.

The networking giant received AI infrastructure orders from hyperscalers worth $4 billion for the fourth quarter ended July 25, bringing the total to $9.3 billion.

It expects annual revenue to be between $72.2 billion and $73.4 billion, compared with analysts' average estimate of $68.69 billion, according to data compiled by LSEG.

Cisco posted revenue of $17.25 billion for the fourth quarter ended July 25, beating estimates of $16.82 billion.

Source: Reuters

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