Cisco AI Business Outlook Misses Investor Expectations, Shares Fall About 4% in After-Hours Trading

Odaily News According to the company's reported results, AI-related sales in fiscal year 2027 are expected to account for approximately 10% of Cisco's total revenue. The company expects full-year total revenue of $72.2 billion to $73.4 billion. This is the first time Cisco has provided a full-year AI revenue forecast. Some analysts believe this forecast is too conservative, as Cisco secured approximately $4 billion in AI-related orders in the quarter ending July 25 alone. Following the earnings release, Cisco's shares fell about 4% in after-hours trading.

Cisco CEO Chuck Robbins stated that the company's AI-related revenue in fiscal year 2026 was approximately $4 billion, while orders exceeded $9 billion. Since large AI orders are typically placed well in advance, there is a time lag between order conversion and revenue recognition. During the same period, Cisco's fourth-quarter revenue grew 18% year-over-year to $17.3 billion, beating market expectations of $16.8 billion; adjusted earnings per share were $1.22, above the expected $1.17. (Bloomberg)