Cisco Systems Raises Outlook On Soaring Revenue, Profit
Cisco raised its fiscal 2027 non-GAAP earnings outlook to $5.47 to $5.59 per share, an 8% increase, after first-quarter revenue and profit exceeded estimates. The company cited soaring AI infrastructure revenue, which it said will double this fiscal year, driven by data center spending. Shares fell about 6% despite the raised guidance and strong results. The move signals confidence in enterprise and cloud demand even as the stock reacted negatively to the earnings report.
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- ✓ Cisco raised its fiscal 2027 non-GAAP EPS outlook to $5.47 to $5.59 per share, an 8% increase.
- ✓ Cisco said AI infrastructure revenue will double this fiscal year.
- ✓ Cisco's first-quarter revenue and profit topped analyst estimates.
- ✓ Cisco shares fell about 6% after the earnings report and raised guidance.
What changed
Cisco raised its fiscal 2027 non-GAAP earnings per share guidance to $5.47 to $5.59, up 8% from the prior range, following a first-quarter earnings and revenue beat fueled by AI infrastructure demand.
Live updates
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Cisco Raises FY2027 Outlook After Q1 Beat on AI Data Center Demand
Cisco raised its fiscal 2027 non-GAAP earnings outlook to $5.47 to $5.59 per share, an 8% increase, after first-quarter revenue and profit exceeded estimates. The company cited soaring AI infrastructure revenue, which it said will double this fiscal year, driven by data center spending. Shares fell about 6% despite the raised guidance and strong results. The move signals confidence in enterprise and cloud demand even as the stock reacted negatively to the earnings report.
Why it matters
Cisco has been positioning itself as a beneficiary of artificial intelligence infrastructure investment, particularly in data center networking equipment. The first-quarter earnings beat and raised guidance suggest that AI-related spending is translating into revenue faster than some investors expected. The stock decline despite the upbeat outlook indicates the market may have priced in stronger results or is concerned about valuation. Analysts will watch whether AI momentum sustains through the rest of the fiscal year.
What is confirmed
- Cisco raised its fiscal 2027 non-GAAP EPS outlook to $5.47 to $5.59 per share, an 8% increase.
- Cisco said AI infrastructure revenue will double this fiscal year.
- Cisco's first-quarter revenue and profit topped analyst estimates.
- Cisco shares fell about 6% after the earnings report and raised guidance.
Still unconfirmed
- Cisco may face margin pressure from higher AI component costs in upcoming quarters.
What to watch next
- Cisco's quarterly AI infrastructure revenue figures to confirm the doubling pace
- Guidance updates in Cisco's next earnings report
- Enterprise and cloud spending trends affecting Cisco's networking orders
confidence 50%Sources used for this update (10)
- www.schwab.com — Schwab Market Update | Charles Schwab
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- WSJ — Cisco Systems Raises Outlook On Soaring Revenue, Profit
- CNBC — Cisco beats on earnings, says AI infrastructure revenue will double this fiscal year
- Bloomberg.com — Cisco Raises Sales Guidance in Sign of AI-Fueled Momentum
- Investor's Business Daily — Cisco Stock: Cisco Earnings, Revenue Top Estimates On AI Data Center Growth
- Yahoo Finance — Cisco (CSCO) Reports Q1 Earnings: What Key Metrics Have to Say
- finance.yahoo.com — Cisco Raised Its Earnings Outlook 8%. The Stock Fell 6% Anyway
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