Cisco has raised its revenue outlook for fiscal 2027 after reporting a 24 per cent increase in first-quarter sales, supported by demand for networking technology and artificial intelligence infrastructure.
The US technology company announced on Thursday, November 12, that revenue reached US$18.5 billion in the quarter ended October 24, 2026. Net income under standard accounting rules rose 59 per cent to approximately US$4.6 billion.
Cisco now expects full-year revenue of between US$74.8 billion and US$75.8 billion. Reuters reported that the previous forecast was US$72.2 billion to US$73.4 billion.
The company also increased its forecast for AI infrastructure revenue from major cloud operators to US$9 billion for fiscal 2027, more than twice the previous year’s total. Reuters reported that this target had previously stood at US$7.5 billion.
Networking product revenue grew 43 per cent, while sales increased across the Americas, Europe, the Middle East and Africa, and Asia Pacific, Japan and China.
The stronger sales came alongside pressure on profitability at the gross-margin level. Cisco’s adjusted gross margin fell to 65.6 per cent from 68.1 per cent a year earlier.
For its second fiscal quarter, Cisco projects revenue of US$18 billion to US$18.2 billion. These figures remain company forecasts rather than completed sales.
