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Cisco Raises AI Infrastructure Revenue Forecast to $9 Billion
The increase followed quarterly results that topped analyst estimates, while gross margin declined as hardware component costs rose.
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Cisco projected fiscal 2027 revenue of $74.8 billion to $75.8 billion and raised its hyperscaler AI infrastructure revenue outlook to $9 billion from $7.5 billion. The company reported revenue of $18.5 billion and earnings per share of $1.40, both exceeding market expectations. Adjusted gross margin fell to 65.6% from 68.1% a year earlier. Cisco shares dropped 5% after Citi suggested growth may have peaked in the October quarter; Hewlett Packard Enterprise and Arista shares fell 5% and 3%, respectively.
The increase followed quarterly results that topped analyst estimates, while gross margin declined as hardware component costs rose.
Read the full storyThe company generated $18.5 billion in first-quarter revenue, driven by growth in products and networking, while adjusted gross margin declined as services slowed.
The move came alongside a higher annual revenue forecast and strong networking growth in the first quarter, while shares were steady in volatile after-hours trading.