Cisco raises annual revenue forecast on strong AI networking demand

Nov 12 (Reuters) – Cisco raised its annual revenue forecast on Thursday, betting on strong demand for its ​AI networking equipment and cybersecurity tools. The ‌company, which has doubled down on its AI efforts by making strategic investments in silicon and optics, is benefiting as Big ‌Tech’s ​massive spending has moved ⁠beyond AI processors to ⁠the switches and routers required to connect large data-center systems. “We are in the very early stages of a ​multi-year networking supercycle,” CEO Chuck Robbins said in a statement. The company raised ⁠its fiscal 2027 ⁠forecast for AI infrastructure revenue ​from hyperscalers to $9 billion from $7.5 billion. Meanwhile, Cisco ​is also building software tools that businesses ‌can use to build their own armies of bots, known as AI agents, to protect their IT infrastructure ⁠against cybersecurity threats. The company expects fiscal 2027 revenue in the range of $74.8 billion to $75.8 billion, ⁠compared with ‌its previous forecast of $72.2 ⁠billion to $73.4 billion. Cisco reported first-quarter ​revenue ‌of $18.5 billion, compared with analysts’ ​average estimate ⁠of $18.14 billion, according to data compiled by LSEG. Shares of the San Jose, California-based company were flat in extended trading. (Reporting by Anzar Mehraj in Bengaluru; Editing by ​Sriraj Kalluvila)