Cisco raises fiscal 2027 outlook and AI infrastructure revenue target

On November 12, Cisco reported fiscal first-quarter revenue of $18.5 billion, up 24% from a year earlier, for the period ended October 24, 2026. Earnings per share were $1.14 under standard US accounting rules and $1.40 on an adjusted basis, which excludes certain expenses; adjusted earnings per share rose 40%.^[1]

The networking equipment company raised its full-year revenue forecast to $74.8 billion–$75.8 billion and adjusted earnings guidance to $5.47–$5.53 per share. It also raised expected AI infrastructure revenue from hyperscalers—large cloud operators whose data centers need networks connecting computing systems—to $9 billion, more than twice the fiscal 2026 total.^[1]

As large cloud operators expand AI systems, they need more networking equipment to connect computing hardware. Cisco's higher revenue expectation signals that it expects more sales from that spending; the company also reported double-digit growth across all geographies and customer markets, indicating a broad demand base.^[1]

Profit depends on the products sold and their costs. Cisco's adjusted operating margin reached a record 37.8% this quarter—$37.80 of adjusted operating profit per $100 of revenue—but earnings-call coverage flagged pressure from a greater hardware sales mix and memory costs. Networking suppliers can therefore grow sales while still needing to contain costs to protect the profit earned on each sale.^[1][2]

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