Cisco forecasts FY27 revenue above estimates on sustained AI spending

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 company, however, fell over 4% after initially rising 3% in extended trading following the results, as investors had lofty expectations heading into the report. Cisco’s stock has risen more than 60% so far this year.

While the company cleared a high bar, AI infrastructure winners are increasingly being judged on the rate of acceleration, said ⁠Jake Behan, ‌Direxion’s head of capital markets.