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Cisco Stock Earnings: Cisco Systems’ stock jumped almost 6% in early trading on Thursday. The company lifted its yearly profit and revenue forecast, fueled by growing demand for cloud services.
As a leading provider for cloud, enterprise, and telecom clients, Cisco is reaping the rewards of the AI infrastructure boom. With more companies shifting to the cloud and upgrading their networks, its shares have surged nearly 25% this year.
CEO Chuck Robbins said on Wednesday that Cisco has locked in more than $2 billion in AI-related orders for fiscal 2025, with nearly all of them coming from major hyperscaler clients.
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He also projected that AI infrastructure revenue could reach about $3 billion in fiscal 2026. In the quarter ending October 25, the company recorded $1.3 billion in AI infrastructure orders from hyperscalers.
J.P. Morgan said it expects Cisco’s steady flow of enterprise orders to boost confidence in a strong wave of campus network upgrades.
However, the firm noted that investors are likely to stay focused on the rapid growth of AI-related orders, which are rising much faster than anyone had anticipated.
Major tech companies like Alphabet, Microsoft, Meta, and Amazon are planning to ramp up their yearly investments in data centers and advanced chips. This rising demand could serve as a major tailwind for Cisco.
“Our pipeline for high-performance networking products has now exceeded $2 billion, driven by strong interest from sovereign, neocloud, and enterprise customers,” CEO Chuck Robbins said.
Cisco has raised its fiscal 2026 revenue outlook to between $60.2 billion and $61 billion, an improvement over its earlier estimate of $59 billion to $60 billion.
The company’s shares are trading at a forward price-to-earnings ratio of 17.73. In comparison, Arista Networks sits at 40.90, while Dell Technologies stands at 12.83.
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