Cisco raises full-year outlook as AI-driven demand powers Q1 beat

Cisco Systems Inc (NASDAQ:CSCO, XETRA:CIS) reported fiscal 3rd 4th 2026 results that topped Wall Street expectations connected some gross and earnings, driven by accelerating request for AI infrastructure, sending shares up astir 14% to astir $116 connected Thursday morning.

The institution posted adjusted net per stock of $1.06 for the 4th ended April 2026, compared with expert expectations of $1.04.

Revenue came successful astatine $15.84 billion, supra estimates of $15.56 billion, and up 12% year-over-year.

Cisco said the 4th reflected broad-based spot crossed its portfolio. Growth was progressively driven by AI-related infrastructure demand, peculiarly from hyperscale customers. Total merchandise orders roseate 35% year-over-year, oregon 19% excluding hyperscalers.

Networking orders accrued much than 50%, portion information halfway switching orders grew much than 40%. Campus networking orders roseate much than 25% arsenic Cisco highlighted an ongoing multi-year refresh cycle.

For the 4th quarter, Cisco forecast gross betwixt $16.7 cardinal and $16.9 billion, with adjusted net per stock of $1.16 to $1.18. GAAP EPS is expected betwixt $0.80 and $0.85.

For the afloat fiscal year, the institution raised its outlook to gross of $62.8 cardinal to $63 cardinal and adjusted EPS of $4.27 to $4.29, reflecting stronger-than-expected request trends tied to AI infrastructure and endeavor networking upgrades.

"Cisco delivered grounds quarterly gross successful Q3 and we saw precise strong, broad-based request for our products, demonstrating the relevance of our exertion for connecting and securing AI,” Cisco CEO Chuck Robbins said successful a statement.

"Cisco is well-positioned arsenic the captious infrastructure for the AI era, gathering connected our exertion enactment and lawsuit trust, portion innovating astatine the velocity and standard that our dynamic satellite demands."

UBS analysts raised their terms people connected Cisco to $132 from $95, citing stronger request trends and higher net estimates, and reiterated a Buy rating. They said the higher people reflects improved visibility into AI-driven maturation and expanding assurance successful Cisco’s net trajectory.

The slope said Cisco “delivered connected AI bid spot portion dodging a gross borderline pothole,” noting that some gross and AI orders exceeded expectations portion margins came successful broadly successful enactment contempt rising constituent costs and proviso concatenation headwinds. UBS added that the results item Cisco’s operational resilience astatine a clip erstwhile parts of the AI infrastructure assemblage person seen execution misses oregon borderline pressure.

AI orders reached $1.9 cardinal successful the quarter, bringing fiscal-year-to-date AI orders to $5.3 billion, up of anterior expectations. UBS besides pointed to continued hardware momentum, including much than 750,000 400G pluggables shipped and implicit 40,000 800G units, on with ongoing hyperscaler plan wins crossed systems and optical segments.

The analysts said Cisco’s updated outlook, including a raised AI bid people of astir $9 cardinal for fiscal 2026, should assistance enactment the banal adjacent astatine all-time highs, reflecting sustained request for AI infrastructure and networking upgrades.